There Were 259 HDB Resale Flats That Were Sold For More Than 1 Million Dollars in 2021

By
Lin Jiawen
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When it comes to price tags, it’s all about the money, even if Jessie J’s hit song may beg to differ.

And it’s even more so in today’s society where inflation is an ever-present constant, with prices of everything increasing.

Especially housing.

259 Resale HDB Flats Sold For More Than One Million Dollars Last Year

That’s a new record-breaking high.

To put it to perspective, only 82 units were sold for over a million dollars in 2020, making the 2021 value more than triple of 2020’s.

And 40 of these units were priced at $1.2 million and above, a sharp increase from the 7 in 2020.

In the fourth quarter of 2021, 5-room flats in Queenstown were the most expensive with a median price of $935,000, followed by Toa Payoh, which had a median price of $894,000 for five-room flats.

Even though property cooling measures were introduced at the end of last year to encourage financial prudence and hence reduce the staggering increase of property prices, it seems like 2022 will still be another year of increased property prices.

So far, at least 24 HDB resale flats have been sold for over one million dollars this year.

Overall, housing prices rose by 12.9% in 2021, making it the highest rate since 2010.

Why Are Prices Rising by So Much?

One reason why property prices may have increased so much despite us being in a pandemic is due to the new norm: working from home.

With that, there may be greater demand for larger, more functional homes. Many are also more willing to fork out money to ensure a conducive environment.

Mr Mohan Sandrasegeran, research and content analyst at real estate agency Ohmyhome agreed, saying, “The work-from-home culture has invigorated the demand for a bigger space.”

This is reflected in how five-room flats have increased the most in terms of their price last year.

What’s Next?

The Housing Development Board (HDB) has stepped up to make sure that an increased number of Built-To-Order (BTO) flats will be rolled out in the coming years across most locations in Singapore.

From 2021 until 2025, HDB has said that they are ready to open up up to 100,000 BTO flats if there continues to be a strong demand for them.

In 2022 and 2023 alone, HDB plans to launch up to 23,000 of them.

HDB will start to put up sales for around 3,900 BTO flats in the following neighbourhoods next month:

  • Geylang
  • Kallang/Whampoa
  • Tengah
  • Yishun

And approximately 5,200 to 7,200 BTO flats will be available for purchase in the following neighbourhoods in May:

  • Bukit Merah
  • Jurong West
  • Queenstown
  • Tampines
  • Toa Payoh
  • Yishun

The relevant details regarding these sales will be released at a later date.

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However, there is also news that the rate of increase of resale HDB prices may be slower this year.

This is due to the cooling measures, which has resulted in higher mortgage rates and inflation rates, causing buyers to be more prudent in their spending.

However, that also means that purchasing resale HDB flats will become more accessible to a larger percentage of the population.

“The slower price growth this year may bring reprieve to some buyers as last year’s rapidly rising home values have priced out families with little cash savings,” Ms Christine Sun, senior vice-president of research and analytics at real estate firm OrangeTee & Tie, concluded when interviewed by The Straits Times.

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Lin Jiawen
Email: [email protected]