HomeNewsAstonishing Record Of 470 Million-Dollar HDB Flats Sold In 2023
Astonishing number of million-dollar hdb flats sold

Astonishing Record Of 470 Million-Dollar HDB Flats Sold In 2023

Number Of Million-Dollar HDB Flats Increased 27.4% year-on-year

In 2023, an estimated 470 HDB resale flats crossed the million-dollar mark as compared to 369 resale flats in 2022. The highest price for a HDB resale flat was S$1.5 million (S$792 psf). It was achieved by a four-room jumbo (adjoined) flat at 50 Moh Guan Terrace in Tiong Bahru. The 1,895 sqft flat on the fourth floor of the block has a remaining lease of 48 years.

Only Four HDB Towns Have Yet To See A Million-Dollar HDB Flat

Four of the 26 HDB towns have yet to see a million-dollar hdb flat transaction. They are Choa Chu Kang, Jurong West, Sembawang and Sengkang. There three HDB towns with the most million-dollar flat transacted in 2023 were Bukit Merah, Toa Payoh and Kallang/Whampoa.

Property Cooling Measures For HDB Resale Flats

Although the government introduced property cooling measures for HDB Resale Flats in September 2022, the demand for resale flats has been relatively resilient. The 15-month wait-out period for former private homeowners who intend to buy a resale flat in the open market also likely contributed to a moderation in demand for larger flats that tend to appeal to private home downgraders. 

Supply of New Flats Reaching MOP Likely To Decline

The supply of new flats that reached the five-year Minimum Occupation Period (MOP) in 2023 was about 15,549 units, which is half the 31,325 that hit MOP in 2022, implying the supply of newer resale flats in the market has dipped. In 2024 the supply of flats reaching MOP is expected to decline further to 13,093 units. 

In 2024, the supply of new flats hitting MOP is expected to decline further to 13,093 units. The number of flats achieving MOP in mature estates will increase to 5,392 units in 2024 from 4,365 units in 2023. 

The mature estates with the highest number of flats reaching MOP next year are Tampines (1,930 units), Toa Payoh (1,286 units), Bedok (660 units) and Geylang (642 units). For non-mature estates, Sembawang (2,669 units), Sengkang (2,081 units), Yishun (824 units) and Punggol (754 units) will have the highest number of flats reaching MOP.

New Record Price For Million-Dollar HDB Flat In 2024

A five-room design, build and sell scheme (DBSS) flat at 139A Lorong 1A Toa Payoh was sold for a record breaking S$1,568,888 based on a caveat lodged as at 26 January 2024. The flat is 1,259 sqft in size, which translates to S$1,246 psf on the floor area. Most million-dollar flats are typically found in mature estates such as Bukit Merah (62 units), Toa Payoh (57 units) and Kallang/Whampoa (54 units). 

Record Number of Million-Dollar HDB Flats Expected To Be Surpassed In 2024

With limited supply from flats hitting their MOP this year, there could be more competition especially as buyers may prefer resale flats in prime locations as these come with fewer restrictions. 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. 

Hence buyers view resale flats with no restrictions on resale as potentially having better capital appreciation and are willing to buy them now.

(Source: EdgeProp)

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