There Have Been 72 Million-Dollar HDB Flats from Jan to Nov 2020

In a year where countless businesses have been snuffed out and workers laid off, you’d expect those looking for a new home to put off their plans for at least a year.

But the opposite has happened: people are splurging on houses, and HDB flats at that. 

There Have Been 72 Million-Dollar HDB Flats from Jan to Nov 2020

A whopping 72 HDB resale flats have been sold for a million dollars or more so far this year, up from 64 for the whole of 2019.

13 million-dollar flats were sold in November alone, according to data from real estate portal SRX released on Thursday (10 Dec).

While the total number of transactions dropped this year, HDB resale prices rose for the fifth consecutive month.

In November, a five-room unit at The Pinnacle @ Duxton, sold for $1,248,000, the highest transacted price that month.

On the other end of the HDB resale market, a five-room Design, Build and Sell Scheme (DBSS) flat in Parkland Residences in Hougang sold for $810,000, the highest price for a resale flat in non-mature estates.

So, why are so many people willing to spend a million dollars or more on an HDB flat?

Location, Location and Location (and Other Factors)

One of the main reasons is that many of these flats are in central locations.

Residents are willing to shell out a million dollars for the convenience of being near to the city and the available amenities.

Some residents who intended to buy private condos may also have been turned off by the prices, which haven’t dipped despite the pandemic.

As PropNex head of research and content Wong Siew Ying explained to ST: “A family-sized private condo in the suburbs could cost $1.5 million, but for $1 million or so, the buyer can get a relatively similar sized HDB resale unit on a high floor and in a prime spot near the city”.

There are several other factors as well that might make a flat worthy of such a price:

• It’s a “Design, Build & Sell” (DBSS) flat
• It’s a maisonette that is near an MRT station
• It’s on a high floor and has a nice view
• It has more than 90 years on the lease
• Another flat in the estate has sold for a million dollars

Moreover, most of the resale flats are huge in comparison to some of the newer, Build-To-Order (BTO) flats.

Million-dollar Flats Make Up Just 0.3% of Total Resale Transactions

While it sounds like HDB flats are being sold for a million dollars every few hours, such transactions only make up 0.3% of the total resale transactions made in the first 11 months of 2020.

There have been a total of 21,876 resale flats sold since January, of which 72 were acquired for a million dollars or more.

Overall prices for resale flats have risen, though.

According to ST, November’s resale prices are 5% higher than a year ago but 9.5% lower than their peak in April 2013.

Despite the economic impact of the pandemic, an estimated 23,000 to 24,000 HDB resale flats could be acquired this year, not far off from the 23,714 transacted in 2019.

However, lest you’re now eyeing a BTO in Bishan and hoping to be a millionaire, do note that soon, the authorities might be stepping in to control the prices. You can read more about this here.

Featured Image: happycreator / Shutterstock.com