HDB resale prices up 1.2% MoM in September: report
The prices grew for the 27th straight month.
HDB resale prices posted a 1.2% month-on-month (MoM) increase in September, with a total of 2,589 flats transacted during the month, according to a report by 99.co and SRX.
Mature and non-mature estate prices increased by 0.4% and 1.7%, respectively, compared to the previous month. Five-Room prices lead the increase with a 2% growth, followed by Executive by 1.9%, three-room by 0.9%, and four-room by 0.7%.
Overall prices rose by 11.1% year-on-year (YoY).
READ MORE: HDB resale volume drops 1.7% MoM in August
Meanwhile, the number of transacted flats in September rose by 2.8% YoY and 11.4% MoM to 2,589. 41% of which were four-room, 26.7% were five-room, 23.3% were three-room, and 7% were Executive, whilst the remaining were from other room types.
The report added that 60% of the resale volume were non-mature estates and 40% were mature estates.
The highest transacted resale flat was a five-room DBSS unit at Natura Loft in Bishan for $1.3m, while the highest transacted price in non-mature estates was around $1.2m by a five-room Premium Apartment Loft unit at Punggol Sapphire.
A total of 45 HDB resale flats worth at least $1m were transacted in September, accounting for 1.7% of the total and is the record high number in a month.
Pow Ying Khuan, head of Research at 99 Group, said price growth may slow down and transaction volumes will dip with the newly imposed cooling measure that targets the HDB resale market.
“There’s a high chance that transaction volumes would decline in the ensuing months, especially considering that about one in ten resale flat buyers are private property owners (PPO) or ex-PPOs,” he said, adding that million-dollar flats are expected to decline in the coming months following the effect of the cooling measures in December 2021.
Pow added that it may become less competitive for first-timers with immediate needs to enter the housing ladders as the pool of potential buyers shrinks.
“But with a smaller maximum loan amount now, this group of buyers would avoid overstretching themselves and may opt for flats that are smaller or in estates that are relatively more affordable. As a result, while genuine demand could hold firm, it is likely that these interplaying factors could lead to a stabilisation in HDB resale prices,” he said.