68 HDB flats resold for over S$1M in April alone: Is this cause for concern?

SINGAPORE: The resale property market saw an 11% month-on-month increase in the number of million-dollar resale Housing Development Board (HDB) flat transactions in April.

According to the latest data from property firm PropNex, 68 units were transacted in April, compared to 61 units in March.

While the data shows that the property market enjoys robust growth, the surge in high-value transactions has raised concerns about housing affordability as more Singaporeans grapple with inflation outpacing wages and a broader cost-of-living squeeze.

The April transaction uptick brings the total number of million-dollar resale flats sold in the first four months of 2024 to 253 units, suggesting that the record of 469 units sold in all of 2023 could be surpassed by year’s end.

Of the 68 units sold in April, seven were in non-mature towns, marking a trend of high-value properties becoming more prevalent in less established areas.

Specifically, these units were located in Sengkang, Bukit Panjang, Hougang, Woodlands, Yishun, and Jurong East, with the latter town accounting for two of the seven units.

In the mature towns, the distribution of million-dollar flats was as follows:

– Ang Mo Kio: 5 units

– Bedok: 2 units

– Bishan: 2 units

– Bukit Merah: 9 units

– Bukit Timah: 3 units

– Central Area: 1 unit

– Clementi: 2 units

– Geylang: 1 unit

– Kallang Whampoa: 15 units

– Queenstown: 8 units

– Tampines: 4 units

– Toa Payoh: 9 units

PropNex also provided insights into the types of flats being transacted. The breakdown of the 68 units sold in April includes 24 four-room flats, 22 five-room units, and 22 executive flats.

This variety reflects a consistent demand for different flat sizes, catering to various family needs and preferences. Despite the clear demand in the million-dollar resale flat market, the broader issue of housing affordability persists.

As costs increase everywhere – from the Goods and Services Tax (GST) hike to escalating water, gas, and electricity prices – the challenges of home ownership remain a growing concern for some families.

The government has taken steps to address housing affordability, including measures to cool the property market and increase housing supply.

However, the sustained demand for high-end resale flats perhaps indicates that more needs to be done to ensure that housing remains accessible for all Singaporeans.