Demand for million-dollar HDB resale flats seems to be declining

  • In spite of the Covid-19 growing rapidly, some of the HDB resale flats have managed to break the million-dollar mark with one sold at a whopping record price of S$1.232 million in March 2020.
  • March 2020 witnessed 5 HDB resale flat transactions with 9 more transactions in the past 2 months making the total for the first quarter to attain the count of 14 which is double the count of resale flat transaction in the final quarter last year.
  • Despite the resale flats are still being sold at eye-catching prices, the data revealed by Ms. Sun, head of research and consultancy, OrangeTee & Tie, shows that there is a downtrend in the transactions of million-dollar HDB resale flats as the supply is more along with various other alternatives available in the market.
  • Data from the research shows that only 64 million-dollar transactions took place in the year 2019, which is less as compared to the 72 million-dollar transactions in 2018.
  • Ms. Sun argues that even though the transactions in Q1 2020 is double the transactions in the Q4 2019, it is still less than the 17 units sold in the same quarter last year, that is, Q1 2019.
  • Ms. Sun expected the number to be higher as a lot of HDB flats reached there minimum occupation period (MOP) in the same duration.
  • With HDB boosting the supply of new flats in response to the housing shortage it is less likely that there will be an exponential increase in the transaction of million-dollar HDB resale flats considering the uncertainties in the macroeconomy currently.

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