The second month of the year summed up values of 23 million in the form of reselling apartments, released by the HDB. It is interesting to see that the prices of flats increased constantly over the past months, February is the 8th month in the row which recorded such increases. So, we can say that the past month brought another record, somewhat unexpected if we consider past events. More precisely, as numbers show, the price of resale units increased by 1.4% in February, compared with January of the same month.
If we are to look at the years that passed, the prices practiced this February are higher than those of the same month of the past year. In other words, February 2021 recorded prices 8.3% higher than the month of February in 2020. However, current price values are far from reaching the peak that was noted back in 2013, in April, when prices were the highest. Compared to the peak, present-day prices are 5.7% lower.
Concerning the prices of flats that changed owners last month, there was a good number of units that were sold around the sum of one million. The most expensive unit sold in February during this process touched the value of $1.21 million and it represented an executive maisonette located in Toh Yi Drive. The same type of unit, but this time sold on an estate that is a non-mature one, managed to reach a selling price of $890,000, which shows that people are willing to pay for the units they desire. The previously mentioned unit is located at Choa Chu Kang Street 64.
Summing up the sales recorded by the months of January and February this year, the obtained result indicates a total of 36 units sold. Things are much better than the same period of the past year when only 8 units were sold. So, we might say we start sensing a bit of normality in the world again. According to specialists, last month was not that great because most people were busy with the festivities surrounding the New Chinese Year. Now that these are over, it is expected for the market to step up its pace. Nevertheless, this year’s February was the best concerning resale flats since 2010.
The biggest percentage of purchase resale flats consistent in large units, offering 4 bedrooms. 40.7% of the sold units were apartments equipped with four bedrooms, which makes this type of unit the most desired. 5-bedroom units were also appreciated by homebuyers, composing a total of 28.6% of the sales. This is a clear image that homebuyers are looking for more spacious and generous living units, capable of providing the degree of comfort they need for the entire family. Finally, apartments with 3 bedrooms made up 21.6% of the total number of sales, while the remaining percentage was represented by smaller units, multi-generation apartments, and executive units.
According to Ms. Sun, OrangeTee & Tie’s senior vice-president of research and analytics, the increase in prices for resale units may be due to certain aspects. For instance, many young couples and families turned to resale units recently, perhaps because they were not willing to wait 5 years for the completion of BTO units or they didn’t manage to be successful at getting such a unit. Also, resale units located in suburban areas are more desirable in the eyes of homebuyers, due to their rather accessible prices, compared to city-center units. It is also expected for the prices to stay strong throughout the entire year and even continue growing as months pass by, so flats are not going to get cheaper anytime soon.