4-room HDB resale flats narrow price gap with 5-room units to record low

The price gap now stands at 15%.

The difference in prices between 4- and 5-room HDB resale flats has been shrinking rapidly, OrangeTee observed.

In Q3, average resale prices of 4-room flats grew by 3.5% YoY, faster than the 1.4% YoY growth of 5-room flats.

Additionally, prices of 4-room flats surged by 43.3% from $445,472 in Q3 2020 to $638,566 in Q3 2024. 

In comparison, 5-room flat prices increased at a slower rate of 37.1%, from S$535,462 to S$734,126 during the same period.

In a year-on-year comparison from 2023, 4-room flat prices grew by 8.2%, whilst 5-room flats saw a smaller increase of 6.4%.

OrangeTee reported that the price gap between the two flat types has shrunk to 15%, the smallest on record.

According to the real estate expert, the shrinking price gap is due to faster price growth for 4-room flats, with more fetching higher prices.

During the first three quarters of 2024, 687 4-room flats were resold for $900,000 or more, outpacing the 591 5-room flats and 477 executive units at this price. 

By contrast, only 44 4-room flats were sold at this level in 2019, versus 153 5-room flats and 45 executive flats.

OrangeTee said the proportion of 4-room flats in million-dollar flats sold has also seen a “substantial surge” over the past two years.

Between January and September 2022, only 9% of million-dollar flats sold were 4-room flats, totalling 25 units. 

By contrast, 4-room flats accounted for 33.9%, or 254 units, of million-dollar flats sold in January to September 2024.