SINGAPORE: Resale prices in the public housing market rose 2.8 per cent in the first quarter of 2021, according to flash estimates released by the Housing and Development Board (HDB) on Thursday (Apr 1).
The resale price index, which provides information on the general price movements in the resale public housing market, rose from 138.1 to 142.0, the HDB estimates showed.
This comes after prices in the fourth quarter of 2020 climbed 3.1 per cent over that in the previous quarter. Prices in third quarter of 2020 rose by 1.5 per cent.
The pace of the COVID-19 vaccination roll-out and vaccine efficacy have turned out “better than expected” and this has resulted in a property boom in recent months in many countries, said OrangeTee & Tie's senior vice president of research and analytics Christine Sun.
“HDB resale prices rose higher last quarter in tandem with the rising home values observed around the world,” said Ms Sun.
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These prices are now inching closer to the peak in second quarter of 2013, said Ms Sun, adding that at the current pace of price growth, “a new peak may be formed by the second half of this year”.
“This year will likely see a new record number of million-dollar flat sales,” Ms Sun said.
A total of 53 resale flats were sold for at least S$1 million in the last quarter, the highest quarterly sales of million-dollar flats since 1990, she added.
“The total number of million-dollar transactions this year will likely surpass the record sales inked in 2020 (82 units)," said Ms Sun.
The upward trend is likely due to buyers looking to pay higher prices for resale flats in “desirable locations” such as in mature estates, or near popular primary schools, MRT stations and shopping centres, said Ms Sun.
“These buyers could be downsizing from private properties or former en bloc homeowners who are currently still on the lookout for large, affordable replacement homes.”
She added: “Seller expectations may continue to rise in the coming months and some may ask for higher prices."
More detailed housing data will be released along with the final resale price index for the full quarter on Apr 23, said HDB.
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ABOUT 8,700 BTO FLATS AVAILABLE THIS YEAR
HDB announced on Monday that it will offer about 8,700 Build-to-Order (BTO) flats this year.
“Given the economic uncertainty due to COVID-19, HDB is monitoring the housing market closely and will calibrate supply if required,” said the agency.
In May, HDB will offer about 3,800 BTO flats in Bukit Merah, Geylang, Tengah and Woodlands while it will offer another 4,900 BTO flats in August in Hougang, Jurong East, Kallang Whampoa, Queenstown and Tampines.