A record-breaking 82 million-dollar HDB resale flats were transacted in 2020.
HDB resale prices jumped 6.4% for the whole of 2020, accelerating from the 0.3% increase recorded in 2019, according to data from the SRX.
Prices for all room types rose for the whole year. Three room and 4 room types recorded the highest price increases, with a 6% and 6.1%, respectively. Meanwhile, prices of 5 room units edged up 5.7% whilst executive unit prices rose by 3% for the whole year.
A record-breaking 82 million-dollar HDB resale flats are recorded for the whole of 2020, the highest ever for a single year. In December 2020, there are 10 HDB resale flats transacted for at least $1m.
A total of 23,427 resale transactions are recorded for the whole of 2020, 4.3% higher than 2019. Of this, 2,489 HDB resale transactions happened in December 2020, 6.8% higher than the previous month.
December also marked the seventh straight month where HDB resale flat deals surged beyond the 2,000-mark.
The increase in demand may likely be fuelled by record-low mortgage rates and the government’s fiscal stimulus programs, which boosted buyer confidence, said Christine Sun, head of research and consultancy, OrangeTee & Tie.
“The four government stimulus packages, amounting close to $100b, have preserved the household incomes and employment of many Singaporeans. This may have boosted buyer confidence to proceed with their property purchases and the strong demand helped to sustain property prices over the past few months,” Sun noted.
Policy changes and housing grants introduced beginning 2019 also drove demand for resale flats, according to Siew Ying Wong, head of research and content at Propnex Realty.
“We believe policy changes — introduced in 2019 — such as the generous housing grants of up to $160,000 for first-time buyers and updated rules on CPF usage and HDB housing loan, which help to enhance the attractiveness of older properties, have gained greater traction this year, playing a key role in driving resale flat demand,” he said.
For the whole of 2020, mature and Non-Mature Estates recorded a 4.3% and 7.8% price increase, respectively.
Compared to a year earlier, resale volume in December 2020 is 34% higher. By room types, 40% of the volume comes from HDB 4 Room, 28% from 5 Room, 22% from 3 Room, and 8.8% from Executive. The rest are from 2 Room.
For the month of December, HDB resale price rose 1% compared to November 2020. Mature and Non-Mature Estates prices jumped 0.4% and 1.4%, respectively, as compared to the previous month. In terms of room types, 3 Room, 4 Room, 5 Room and Executive prices increase by 0.6% month-on-month (MoM), 1.4% MoM, 1% MoM and 1.2% MoM, respectively.
The highest transacted price for a resale flat in the month is achieved at almost $1.22m by a 5 Room DBSS unit at Natura Loft. In Non-Mature Estates, the highest transacted price is achieved at $845,888 by an Executive Maisonette unit at Hougang St 21.
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