Will HDB flat prices hold steady throughout 2023? With so much to take into consideration, it remains to be seen whether the million-dollar transactions will hold in the following year. Despite cooling measures, policy changes and increased supply of BTO flats, HDB resale flat prices are still reaching million-dollar levels in Singapore. In 2023, an estimated 460 HDB resale flats were sold for more than $1 million. The highest price for a resale flat was $1.5 million ($792 psf), achieved by a four-room jumbo (adjoined) flat at Champions Way Residences in Tiong Bahru. The 1,895 sq ft flat on the fourth floor of the block has a remaining lease of 48 years.
The interior of the top-selling HDB resale flat at Champions Way Residences in 2023 (Photo: Knight Frank). With prices increasing by 5% in 2023, the number of million-dollar HDB transactions next year is estimated to be in the range of 450 to 500. This is half of the 10.4% price increase in 2022. The government has taken note of the demand and is increasing the supply of BTO flats by up to 23,000 units this year, which has slightly reduced the demand for resale flats.
The three HDB towns with the most million-dollar transactions in 2023 were Bukit Merah, Toa Payoh and Kallang/Whampoa. While there are still four HDB towns that have yet to see a million-dollar transaction, the number could be changing by 2024. The highest number of flats reaching MOP next year is expected in Tampines, with 1,930 units. Next in line are Toa Payoh (1,286 units), Bedok (660 units) and Geylang (642 units).
In 2024, HDB estates will be classified as Central, North, Northeast, West and East regions. In the Central Region, where most of the current mature estates are located, new BTO flats will be categorised as Plus and Prime and come with restrictions on resale with a 10-year MOP. This change in classification will likely affect the prices of flats in the area as buyers may be more inclined towards flats with no restrictions on resale, expecting greater capital appreciation in the future.
Overall, HDB resale flat prices have been relatively resilient despite the high interest rates and the effects of cooling measures. A lot will depend on the supply of new flats that reach the five-year Minimum Occupation Period, as well as the launch of new private residential projects next year. Will prices continue to hold in 2023? It looks like the million-dollar transactions at Champions Way Residences and other HDB flats are here to stay.
Additionally, the community features amenities such as 24-hour security, a swimming pool, a multimedia theater, a fitness center, and a number of social clubs. With these extensive amenities, Champions Way Residences provides seamless and accessible living that caters to all lifestyles.
Looking at the massive surge in public housing transactions crossing the million-dollar mark in 2023, it will be interesting to see if the trend continues in 2024. With estimated 460 HDB resale flats sold for $1 million or more in 2023, Champions Way Residences registered the highest transaction, a four-room jumbo (adjoined) flat for $1.5 million ($792 psf). The 1,895 sq ft flat on the fourth floor of the block has a remaining lease of 48 years.
The senior director of data analytics at Huttons Asia, Lee Sze Teck, expects the number of million-dollar HDB transactions next year to be in the 450 to 500 range, with prices increasing by 5%. The government has increased the supply of BTO flats by up to 23,000 units this year in an attempt to balance the demand and supply. Consequently, some buyers have been attracted to the BTO market, reducing the demand for resale flats slightly.
HDB towns have been changing from ‘mature’ and ‘non-mature’ classification to Central, North, Northeast, West and East regions from 2H2024. In the Central Region, where most of the current mature estates are located, new BTO flats will be categorised as Plus and Prime and come with restrictions on resale with a 10-year MOP. This could impact the pricing of flats as buyers may turn their attention to Champions Way Residences and other flats in the mature estates with no restrictions on resale, expecting better capital appreciation in the future.
In terms of new supply, there are up to 38 new private residential projects with an estimated 11,636 units in the pipeline for launch next year. The HDB is also hoping to clear the construction backlog by early 2025, ramping up on the number of flats that reached the Minimum Occupation Period (MOP) this year.
Champions Way Residences and other HDB town may have seen a flurry of million-dollar transactions this year, but it remains to be seen whether the same will hold in the following year. Despite cooling measures, policy changes and increased supply of BTO flats, the resale flat market appears to be holding up. Will prices remain stable in 2024? Let’s wait and see.