Million-dollar flat transactions expected to surpass 2020 levels in H1

Sales of high-end HDB resale flats have soared to 90% of 2020 levels in the first four months of 2021.

Million-dollar HDB resale flat transactions reached 74 in the first four months of 2021, more than 90% of the 82 units sold for the whole of last year, according to data released by SRX.

Senior vice president of research and analytics Christine Sun said with the trajectory of million-dollar HDB resale transactions, a new record may be inked in May.

The resale of million-dollar HDB flats have steadily risen after a slight dip in 2019 to 64 from 71 in 2018.

A five-room 120 sqm DBSS at Bishan Street 24 was sold for $1.25m in April, the second-highest priced resale flat on record just slightly below the priciest flat sold at $1.258m for a five-room HDB flat at Pinnacle at Duxton in September last year.

Meanwhile, Sun said construction delay of Build-To-Order (BTO) flats will continue due to manpower shortages and supply chain disruptions and is likely to drive up demand for HDB flat sales.

“The situation may be further aggravated if there are more construction delays stemming from the recent resurgence of cases in the community and dormitories. Couples who do not wish to defer their wedding or family planning may buy a completed home. There are also buyers who are turning to the secondary market as they may wish to avoid the uncertainty of not knowing when their flats can be constructed or if there may be further delays since the pandemic is still evolving,” Sun said.

PropNex’s head of research and content Wong Siew Ying agreed with Sun saying that HDB resale prices continued to rise amidst persistent strong demand and tight availability of resale flats.

“The improved economic outlook, projected delays in the completion of new BTO flats, as well as firm private home prices are some key factors that have spurred demand for resale HDB flats. The recent announcement of restrictions on arrivals from countries in the Indian sub-continent could further exacerbate the manpower crunch in the construction sector, leading to a much longer waiting time for new BTO flats,” Wong added.