Million-dollar HDB Resale Flats Set New Records in January 2024

Fresh from a year of record-smashing number of HDB resale flats sold for at least $1 million in 2023 – 470 units to be exact – the enthusiasm for such breed of resale public housing flats has not waned the slightest, heading into 2024. Based on transaction data, there were 74 flats resold for at least $1 million in January, the highest monthly tally since 54 such units changed hands in August 2023 (see Chart 1). In addition, two 5-room units in Toa Payoh fetched more than $1.5 million, rewriting the record price for the most expensive resale flat ever sold.

The 74 units of million-dollar flats resold in January represents a 54% jump from the 48 units transacted in December. Among them, four units are located in non-mature towns (Hougang 2 units, Punggol 1 unit, Woodlands 1 unit). The remaining flats are in Ang Mo Kio, Bedok, Bishan, Bukit Merah, Bukit Timah, Central Area, Clementi, Geylang, Kallang Whampoa, Pasir Ris, Queenstown, Serangoon, Tampines, and Toa Payoh. By flat type, 31 of the million-dollar resale flats are 5-room units, 19 units are 4-room flats, and 24 units are executive flats.

Chart 1: Number of “Million-dollar” HDB Resale Flats sold By Month

Source: PropNex Research, Data.gov.sg

The record price for HDB resale flats was shattered not once but twice in January, when two units were resold for more than $1.5 million – a record held by an adjoined resale flat in Moh Guan Terrace which was transacted in June 2023. Both units are 117-sq m 5-room flats located at The Peak @ Toa Payoh. The unit situated between the 31^st and 33^rd floor fetched $1.54 million, while another unit on the floor ranging between 40^th and 42^nd storey changed hands for about $1.57 million (see Table 2).

 Table 2: Top 10 HDB resale flats sold in January 2024 by Transacted Price

 Source: PropNex Research, Data.gov.sg

It appears that buyers are starting to awake from the year-end market slumber. In January, the resale flat volume rose by 30.7% month-on-month to 2,625 units, from 2,009 units in the previous month (see Chart 2). When compared with January 2023, resale transactions were up by 2.9% from 2,551 units a year ago. Non-mature towns accounted for about 63% of the HDB resale transactions in January, with Sengkang, Woodlands, and Yishun leading sales in the month. Meanwhile, the average transacted resale price rose by 2.2% MOM to $591,343 in January – a new monthly peak.

 Chart 2: HDB resale volume and average transacted price by month

Source: PropNex Research, Data.gov.sg

By flat type, the average resale price of executive flats rose at a faster clip in January, increasing by 5.3% MOM to about $865,600. This was followed by 3-room and 5-room flats where the average resale price climbed by 2.0% and 1.9% MOM respectively (see Table 2). Meanwhile, the average price of 4-room resale flats dipped marginally to $597,578.

It is possible that many former private home owners, who had served their 15-month wait-out period (a measure implemented in September 2022) after selling their private home have returned to the HDB resale market, and in turn, have contributed to the uptick in prices – particularly for the larger flat types. These buyers tend to prefer larger homes, and being armed with proceeds from the sale of their private home previously, they are also in a position to pay a higher price for the units they desire. 

Table 2: Average transacted HDB resale flat prices by Flat Type in last six months

Source: PropNex Research, Data.gov.sg

Looking at the sales data by towns and flat types, the average prices of most resale flat types saw growth, with the exception of 4-room flats in non-mature estates which eased by 0.4% from December to January (see Table 3). The flat type that witnessed the largest price increase in mature towns was executive flats, where average resale price grew by 3.8% MOM to more than $963,400 in January. In the non-mature towns, 5-room and executive flats both posted a 2.1% MOM increase in the average resale price.

PropNex believes that a factor that has helped to support 5-room flat resale prices is the stable demand for such flats, among both first-timer buyers and second-timers. In addition, 5-room flats are usually also more limited in numbers in HDB’s build to order (BTO) exercises compared with other flat types (e.g. 4-room BTO flats).

Table 3: Average transacted HDB resale flat prices in Mature and Non-mature towns

Source: PropNex Research, Data.gov.sg

In January 2024, mature towns made up the top 3 lists of estates in PropNex’s ranking of average transacted resale prices on a per square foot basis ($PSF) by flat types (see Table 4). The highest average PSF price for 4-room flats in January was $898 psf in Queenstown, while the highest average unit price for 5-room resale flats was in Central Area at $1,000 psf. For executive flats, Bukit Timah recorded the highest average unit price at $824 psf in January.

Table 4: Top 3 towns by Average $PSF transacted price by flat type in January 2024 (and corresponding price in previous month)

Source: PropNex Research, data.gov.sg

Based on resale transaction data, about 33% of resale flats sold in January were priced at below $500,000, compared with 34.2% in the previous month. Meanwhile, about 64.2% of the flats resold were priced at between $500,000 and just under $1 mil – up from 63.4% in December. The proportion of resale flats sold for at least $1 million made up 2.8% of January’s sales – inching up slightly from 2.4% in the previous month (See Chart 3).

Chart 3: Proportion of HDB Resale Transactions by Price Range

Source: PropNex Research, Data.gov.sg

PropNex expects that the sales volume for million-dollar resale flats could remain elevated in 2024. To be sure, while the number of million-dollar resale flats has crept up, these flats are still outliers, owing to their special attributes and attractive locations. In other words, the vast majority of HDB resale flats are not expected to command prices tipping over $1 million. 

In spite of the rebound in the resale volume in January, transactions could be measured in February in view of the Lunar New Year holidays, and the HDB’s BTO sales launch during the month. About 4,100 BTO flats in Bedok, Queenstown, Choa Chu Kang, Hougang, Punggol and Woodlands will be offered for application – which could draw some buyers from the resale segment, particularly those with no pressing housing needs.