International

HDB resale prices are rising most strongly domestically; Sembawang, Choa Chu Kang among the highest growth

SINGAPORE: Median resale prices for flats from the Housing and Development Board (HDB) have risen most in the interior over the past two and a half years, with cities like Sembawang and Woodlands seeing the biggest increases.

The resale price index, which provides information on general price developments in the public housing resale market in Singapore, has risen for 10 consecutive quarters.

Figures from HDB show that median resale home prices in some immature cities are up more than 40 percent since the first quarter of 2020 — just before the recent real estate boom.

The government has taken two tranches of cooling measures in less than a year: the first in December last year and the second on September 30 this year. The latest resale statistics for the third quarter of 2022 reflect market conditions prior to the latest cooling measures.

Here’s how HDB resale prices have risen in Singapore cities:

HDB APARTMENTS WITH FIVE ROOMS

Data showed that average sales prices of five-room apartments across the country increased by as much as 40 percent.

The biggest jump was in Choa Chu Kang, from S$420,000 to S$588,000. In Woodlands, average sales prices for five-room apartments saw a 38.3 percent increase from S$408,000 to S$566,000 – a difference of S$155,000.

Apart from these two inland estates, the jump was also felt most strongly in Bukit Batok, Sembawang and Ang Mo Kio.

Hybrid work arrangements due to the COVID-19 pandemic may be a major reason people are stepping up to larger flats in non-adult cities, analysts told UKTN.

Ms. Christine Sun, senior vice president of research and analysis at OrangeTee and Tie, said five-room condos are gaining popularity mainly because of a lack of supply in the market and a growing need for larger living spaces.

Five-room apartments are generally picked up by larger households and are available in fewer residential areas compared to four-room apartments.

Ms Sun said: “As more companies adopt hybrid work mode and more people work from home, there is now a greater need for large living spaces.

“Some people use the space to set up a home office, while others may have a few family members working from home at the same time.”

With prices rising, some people may also want to buy larger units, fearing that such units will be “out of their financial reach” in the future, she added.

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