Around 12.7% Hike in HDB Resale Prices with Record 259 Million-Dollar Flats Sold in 2021

The recent stats from the Housing Board resale market shows that prices in 2021 grew to 12.7% which was the steepest rise since the year 2010. Studies from Friday revealed that a total of 259 HDB resale flats were sold last year with an estimated price of $1 million. It was reported to be the highest number so far and the count was high by 82 units since 2020.

Out of these total 259 units, around 40 were sold for approximately 1.2 million in the year 2021. However, this amount was locked for only 7 units in 2020.

The reported highest price in the previous year’s sales was $1.36 million for a five-room design. This flat was designed under the Built and Sell Scheme at Natura Loft and was sold last month.

Moreover, the trend for the sale of flats didn’t fall down in 2022; even after the recent cooling measures implemented by the end of December. Around 24 resale units were sold at a great price up to January 28.

Note that new cooling measures were applied to cool down the public and private new launch and resale condo prices after the hot property market.

Observations state that, among other measures, the loan to value limit for HBD-based housing loans changed from 90% to 85%, and this trend encouraged buyers to achieve great financial prudence.

With the 12.7% rise in the HBD resale price from the previous year, the past month shows further improvement in the market and the prices are now expected to grow up to 14.1% in comparison to the year 2010.

In the year 2020, HDB sales prices improved by almost 5% the entire year. However, during the fourth quarter of the year 2021, a growth of 3.4% was observed that outpaced the 2.9% rise of the 3rd quarter and 3% rise of the 2nd quarter in the previous year.

A total of 31,017 HDB resale flats were sold in 2021 and this count was 25.3% higher than the 24,748 flats sold in 2020.

The five-room flats had the most expensive price tag during the fourth quarter with the median price of $935,000. However, the median price in the third quarter of the previous year was $926,000. The trend was further carried out by Toa Payoh where five-room flats had the median price of $894,000 during the fourth quarter; however, they were limited to $818,000 during the third quarter.

Furthermore, the median resale price during the fourth quarter in the central area for the four-room flat was reported to be $972,500, which was slightly higher than the $950,000 tag during the third quarter.

The data obtained from the housing market also reveals that 75 units in the previous year changed hand at Pinnacle @ Duxton for $1 million while making it recognized as the housing project with the highest number of such valuable deals.

Studies reveal that work from home trends may be the major contributing factor to buyers’ preference on investing in bigger five-room units.

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