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RESALE prices of Housing and Development Board (HDB) flats inched up 0.9 per cent in November from the previous month, and rose 10.4 per cent year on year, based on flash data from SRX and 99.co released on Wednesday (Dec 4).

With 1,951 resale units transacted in November, volumes were lower by 9.6 per cent from October’s 2,158 units and down 8.7 per cent on a yearly basis, marking the fourth straight month of decline.

Luqman Hakim, chief data and analytics officer at 99.co, noted that the price increase in November was “supported by steady demand, especially for flats in mature estates known for their central locations and accessibility”.

“The seasonal slowdown, coupled with the lingering effects of cooling measures, contributed to lower transaction volumes. Many prospective buyers might have stepped back temporarily, with some focusing on their next move after the oversubscribed October Build-To-Order (BTO) launches. Those unable to secure a flat may return to the resale market after the holiday season, potentially driving activity in the months ahead,” he added.

PropNex’s head of research and content Wong Siew Ying attributed the decline in resale flat volume to effects from the reduction in the loan-to-value limit for HDB housing loans from 80 per cent to 75 per cent that was implemented in August, and the slower market activity due to the year-end seasonal lull.

“In addition, the bumper supply of BTO flats – at around 8,500 new flats – in numerous attractive locations that were launched for sale by HDB in October could also have siphoned some demand from the resale market, particularly as the waiting time for some BTO projects is expected to be shorter (less than three years),” Wong said.

Resale prices

In November, resale prices in mature estates grew 1 per cent, while prices in non-mature ones were up 0.2 per cent from the previous month. On a year-on-year basis, resale flat prices in mature estates rose 9.8 per cent, and 9.7 per cent for those in non-mature estates.

Mark Yip, chief executive of Huttons Asia, noted: “There were some buyers who were looking for an HDB flat in mature estates without the resale restrictions placed on Plus and Prime flats. This demand helped prices of resale flats in the mature estates grow faster than the non-mature estates.”

Three-room flat prices rose the fastest on the month by 1.3 per cent, followed by four-roomers at 1 per cent and five-roomers at 0.7 per cent. On the other hand, prices for executive flats fell 2.8 per cent.

Prices for all room types increased over November 2023 levels, led by an 11.2 per cent jump in resale prices for three-room units. This was followed by four-roomers at 10.8 per cent, five-roomers at 9.2 per cent and executive flats at 5.1 per cent.

Million-dollar transactions

The highest transacted price for a resale flat in November was a five-room flat in Dover Crescent in Queenstown, which went for S$1.55 million.

Within non-mature estates, a five-room flat in Compassvale Drive fetched the highest price of S$1.05 million.

A total of 87 HDB resale flats transacted for more than S$1 million each, comprising 4 per cent of November’s total resale volumes, and down from 103 such transactions recorded in October.

ERA Singapore’s head of research and market intelligence Wong Shanting attributed the decline in million-dollar transactions to several factors, including the exam season and a slew of new private-home launches such as Chuan Park and Emerald of Katong, which may have diverted buyers’ attention.

“In particular, we are referring to the segment of private-home owners who are right-sizing or HDB upgraders who are prepared to shell out for million-dollar flats. Many of these buyers may have spent months searching for their ideal home in preferred locations, and were evaluating between private homes and HDB flats. The recent interest rate cuts and new project launches helped sway some of these buyers from HDB resale flats to new homes instead,” she said.

PropNex’s Wong added that in the first 11 months, there were 940 transactions of million-dollar resale flats – already double the record of 469 such transactions in the whole of 2023.

The number of million-dollar transactions may possibly be around 1,000 units for the year, based on Huttons’ Yip’s estimation.

Toa Payoh recorded the highest number of million-dollar flats sold in November at 20 units, followed by Bukit Merah and Kallang-Whampoa, which each had 10 units sold.

In the upcoming months, limited flat supply and declining interest rates are expected to support stable prices. Resale flats in prime locations or with desirable layouts are likely to remain in demand, especially among those seeking larger homes without the longer waiting times associated with new BTO units. Early next year could see a rebound in activity as these factors play out, said 99.co’s Luqman.

Huttons Asia estimates HDB resale volume to be between 29,000 and 30,000 for 2024, with prices of resale flats forecast to grow between 8 and 10 per cent this year.