SINGAPORE: Median resale prices for Housing and Development Board (HDB) flats have climbed the most in heartland areas over the past two and a half years, with towns such as Sembawang and Woodlands recording the largest increases.
The resale price index, which provides information on the general price movements in the resale public housing market in Singapore, has risen for 10 consecutive quarters.
Figures from HDB show that the median prices of resale homes in some non-mature towns have risen by more than 40 per cent since the first quarter of 2020 – just before the recent property boom.
The Government has implemented two tranches of cooling measures in less than a year: The first in December last year, and the second on Sep 30 this year. The latest resale statistics for the third quarter of 2022 reflect market conditions prior to the latest cooling measures.
This is how HDB resale prices have risen across towns in Singapore:
FIVE-ROOM HDB FLATS
Data showed that the median resale prices of five-room flats rose by up to 40 per cent across the country.
The biggest jump was in Choa Chu Kang, from S$420,000 to S$588,000. In Woodlands, the median resale prices for five-room flats saw a 38.3 per cent surge from S$408,000 to S$566,000 – a difference of S$155,000.
Aside from these two heartland estates, the jump was also most keenly felt in Bukit Batok, Sembawang and Ang Mo Kio.
Hybrid work arrangements due to the COVID-19 pandemic may be a key reason why people are forking out more for larger flats in non-mature towns, analysts told CNA.
Ms Christine Sun, senior vice president of research and analytics at OrangeTee and Tie, said that five-room flats are gaining popularity mainly because of a lack of supply in the market and a growing need for bigger living spaces.
Five-room flats are generally snapped up by larger households and are available in fewer estates, in comparison to four-room units.
Ms Sun said: “With more companies adopting the hybrid working mode and more people working from home, there is a greater need for large living spaces now.
“Some people may 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 bigger units as they are worried such units may be “out of their financial reach” in future, she added.