Last year saw the highest number of resale flat transactions cross the $1 million mark since the first Housing Board executive apartment hit that record price in 2012.
Million-dollar transactions more than doubled to 46 last year from the previous year, and the momentum has not shown signs of slowing yet. Some 18 flat owners have secured such deals in the first five months of this year.
These blockbuster deals are especially eye-catching given the backdrop of worries over ageing flats and a HDB resale market that is only now appearing to stabilise after six consecutive quarters of price declines.
The slew of million-dollar sales shows that there is life yet in the market.
In particular, there is growing demand for flats with much longer leases, including replacement flats under the Selective En bloc Redevelopment Scheme (Sers) that reached the five-year Minimum Occupation Period (MOP) last year.
Six standard flats hit the million-dollar mark last year – the highest number in a year – most of which were Sers flats. And of a total of 103 flats that sold for around $1 million since 2012, 77 were less than 10 years old, and 22 were between 10 and 40 years old. Only four were more than 40 years old.
Forking out good money for HDB flats with unique attributes is still a better bargain. This is especially as a comparable private property in the same area could easily cost twice the price.
While million-dollar flats are more the exception than the norm, some analysts expect more resale flats could hit the $1 million mark in the next two years as more flats in Queenstown, such as SkyVille @ Dawson and SkyTerrace @ Dawson, reach MOP in 2020.
And with private home prices expected to hit a new peak by the end of this year as developers roll out new launches on land they had acquired at significantly higher prices, observers say there could be more good news for those looking to sell their flats.
Adapted from: The Straits Times, 4 July 2018