96 Million-Greenback HDBs Bought In June: Who Is Shopping for?

4 min read

Some time ago, I mentioned that prices of certain resale flats are likely to go higher because of the Plus and Prime flats. At least for the near term.

So it’s not too surprising that the number of million-dollar HDB flats hit another consecutive high in June, at 96 units. Average resale flat prices have also continued to rise by 1.8% across the board.

There has been some theorising that once the Plus and Prime models (i.e., the new classification system, replacing the old system of mature vs. non-mature) are out, the upward trend may slow. Or if anything, it may slow due to various other reasons (more BTO supply coming on the market, etc). June’s BTO launch was the last one without the new system, which we’ll see in its full glory come October.

I’m going to stick to my guns though, and disagree with this. I still think that even with the rollout of the new Plus and Prime models, the prices of resale flats in certain hotspots will remain high. There are several reasons for this:

First, the Plus and Prime classification is not retroactively applied. If you had to choose between a Prime/Plus flat with a 10-year MOP, income ceiling, Subsidy Recovery, etc., and one that’s five minutes across the road with zero such restrictions, which sounds better?

And don’t forget the existing resale flat also has the bonus of already being built.

Second, the demand would remain for Plus and Prime flats despite the increased restrictions. For the crowd that absolutely must have a given location, the response to a failed ballot may not be to throw up their hands and give up. They may, instead, opt for a pricier resale flat nearby as a last resort. Intergenerational wealth transfer doesn’t only result in young people buying condos – it can also result in young people having the help to buy high-demand HDB flats, like units at Pinnacle.

Third, the rise of private condo prices. With most new launch condos today being priced above $2,000 psf, more and more homebuyers are being priced out. As such, we can see that some demand has shifted to resale HDB’s – where even million-dollar flats can seem reasonable when viewed from that perspective.

Meanwhile, some 50 odd listings have been taken off the HDB resale portal

But there hasn’t been any exact detail on the reasons, just that it’s related to misinformation or unrealistic pricing. To which I say, HDB is about to embark on a journey of annoying discovery – one I’ve been on with property portals.

I’ve touched a bit on the portal before; but what I didn’t mention in that article is how much effort it takes to police the listings. From potential scams to indecent exposure*, it’s incredible how people will attempt to use a portal. There’s also a lot of grey areas involved, when it comes to prices and listings.

For example: Is $700,000 unrealistic for a 4-room flat? That’s far from rare these days; but what if the neighbourhood average is $600,000? Or when it comes to “misinformation,” who’s to check that my renovations are really just two years old, or whether they’re worth my claimed value of $100,000?

These aren’t issues the portal’s regulators can’t resolve; but doing so requires a tremendous number of hours, and at some point, they might end up questioning if this is really a good use of their resources (as well as how much further they have to the end of their fraying sanity).

*Yes, someone has accidentally put their genitalia in listing pics on a certain portal. If you Google around enough you’ll still find the old reports I’m sure.

Meanwhile, in other property news…

Would you buy a really old flat if you’re still in your 20s? This couple did, and here’s why.
Where are the best 4-room flats in Singapore? Here are some for $500,000 or under, and near MRT stations to boot.
Freehold condos with over 2,000 sq. ft. They’re still around, although they’re quite a bit older.
Older luxury condos are finding it harder to stand out from mass-market condos today. Do they still have anything going for them besides location?

Weekly Sales Roundup (01 July – 07 July)

Top 5 Most Expensive New Sales (By Project)

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
PINETREE HILL	$4,448,000	1733	$2,567	99 yrs (2022)
GRAND DUNMAN	$3,702,000	1432	$2,586	99 yrs (2022)
TEMBUSU GRAND	$3,512,000	1432	$2,453	99 yrs (2022)
SANCTUARY@NEWTON	$3,448,000	1216	$2,835	FH
THE LAKEGARDEN RESIDENCES	$3,433,800	1550	$2,215	99 yrs (2023)

Top 5 Cheapest New Sales (By Project)

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
SORA	$996,000	538	$1,851	99 yrs
HILL HOUSE	$1,320,000	431	$3,066	999 yrs
THE LAKEGARDEN RESIDENCES	$1,405,000	678	$2,072	99 yrs (2023)
HILLOCK GREEN	$1,555,000	710	$2,189	99 yrs (2022)
LENTORIA	$1,567,000	700	$2,240	99 yrs (2022)

Top 5 Most Expensive Resale

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
ARDMORE THREE	$6,150,000	1744	$3,527	FH
TRIBECA	$4,300,000	1765	$2,436	FH
CASABELLA	$4,000,000	3079	$1,299	FH
SOMMERVILLE GRANDEUR	$3,860,000	1884	$2,049	FH
MAPLE WOODS	$3,750,000	1787	$2,099	FH

Top 5 Cheapest Resale

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	TENURE
THE HILLFORD	$578,000	398	$1,451	60 yrs (2013)
SUITES @ TOPAZ	$668,000	377	$1,773	FH
# 1 SUITES	$718,000	581	$1,235	FH
KINGSFORD WATERBAY	$730,000	484	$1,507	99 yrs (2014)
EUHABITAT	$740,000	527	$1,403	99 yrs (2010)

Top 5 Biggest Winners

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	RETURNS	HOLDING PERIOD
MAPLE WOODS	$3,750,000	1787	$2,099	$2,150,000	27 Years
WINDY HEIGHTS	$3,300,000	2476	$1,333	$2,140,000	27 Years
PEBBLE BAY	$3,500,000	2336	$1,498	$1,620,000	17 Years
TREVISTA	$3,026,000	1561	$1,939	$1,591,400	15 Years
GRANDE VISTA	$3,350,000	3434	$976	$1,550,000	16 Years

Top 5 Biggest Losers

PROJECT NAME	PRICE S$	AREA (SQFT)	$PSF	RETURNS	HOLDING PERIOD
SUITES AT ORCHARD	$1,180,000	549	$2,150	-$85,000	6 Years
ONEROBEY	$1,580,000	1302	$1,213	-$35,000	12 Years
VISIONCREST	$1,522,000	721	$2,110	$22,000	17 Years
# 1 SUITES	$718,000	581	$1,235	$51,068	9 Years
EUHABITAT	$740,000	527	$1,403	$54,752	13 Years