July sets new record with 120 million-dollar HDB flats sold, surpassing June’s 96 transactions

SINGAPORE: In July, a total of 120 million-dollar HDB flats were sold, with 56 of them being four-room flats, significantly outpacing the 40 five-room flats sold.

This surpasses the previous record set in June 2024, which saw 96 million-dollar HDB resale transactions.

This marks the second time since April this year that the number of million-dollar four-room flats sold in a single month has exceeded that of five-room flats.

According to data from the government website data.gov.sg, among the remaining million-dollar HDB flats sold in July, 23 were executive flats and one was a three-room terraced flat.

Historically, five-room flats have dominated the million-dollar HDB market, but this trend is shifting.

The first instance of four-room million-dollar flats surpassing five-room flats occurred in April this year, when 68 million-dollar HDB flats were sold, including 24 four-room flats and 22 five-room flats, with the remainder being executive flats.

In the first seven months of this year, 539 million-dollar HDB flats were sold, with 184 being four-room flats, accounting for 34%, meaning that one in three million-dollar HDB flats was a four-room unit.

Five-room flats accounted for 212 units, or about 39%.

In the same period in 2023, the proportion of million-dollar four-room flats was around 25%, while five-room flats comprised 42.5%.

The data also revealed that a Design, Build and Sell Scheme (DBSS) flat located at 275A Bishan Street 24 was sold for S$1.568 million in July.

Separately, an earlier report noted that an HDB two-storey terrace house at 53 Jalan Ma’mor also sold for S$1.568 million.

Recent months have shown a noticeable trend of increasing million-dollar HDB resale flats, raising concerns about affordability, particularly for Singaporeans already grappling with a high cost of living.

In 2023, there were 470 HDB resale flats sold for at least S$1 million, up from the 369 units sold in 2022, as disclosed by data from the Singapore Real Estate Exchange (SRX) on 7 January.

Property consultancy OrangeTee has recently adjusted its forecast for HDB resale prices in 2024, predicting an increase of 7% to 8%.

They attribute the buoyant performance of the HDB resale market to ongoing positive economic growth and improved hiring conditions, which have bolstered consumer sentiment.

As a result, demand for resale flats is expected to remain strong for the rest of the year.

Authorities: Minority of HDB resale flats transacted at S$1 million or more

In May, Singaporean authorities defended the view that resale flats transacted at S$1 million or more represent a minority.

They attribute this to factors such as prime locations and proximity to amenities and MRT stations, which cater to Singaporeans with specific preferences and stronger financial standing.

The Ministry of National Development (MND), the Housing Board, and the Council for Estate Agencies (CEA)  strongly advised prospective buyers to evaluate their finances and housing options carefully and be rational and prudent in their purchasing decisions.