Strong demand from young families pushed prices of 4-room HDB flats up by 35% over last 5 years, say analysts

Strong demand from young families pushed prices of 4-room HDB flats up by 35% over last 5 years, say analysts

“(Since) 2022, we have seen more and more four-room flats being sold quicker. As of last year, this number has gone up about 15 per cent as compared to 2022,” said real estate agent Tay Jooann, adding that prices are expected to continue to go up steadily. 

“In essence, we did see more buyers coming through looking at four-room flats.”

HIGHER DEMAND FOR FOUR-ROOM HDBs

Over the last few years, four-room flats are selling faster than five-room flats, said real estate agents. 

On average, they are getting up to seven inquiries a week for a four-room flat, but only about four per week for a five-room flat. 

Four-room flats are still typically more affordable than the bigger flats, and appeal to younger families and some seniors who are looking to downsize to a smaller unit, said observers. 

Per square foot prices of four- and five-room flats both spiked during the COVID-19 pandemic years, according to past transactions. 

But those for four-room flats grew at a faster pace, and this trend continues to date.