The announcements of higher grants and changes in income ceilings may have spurred the sales of resale HDB flats last month. The number of resale HDB flats sold in October rose a considerable 18%.
18% jump in sales of resale HDB flats in October
2,213 resale HDB flat transactions were recorded last month. In comparison to the same month last year, there was a significant 10.6% increase. The number of transactions rose last month albeit prices of resale HDB flats having dipped a slight 0.2%. 1,874 such units were sold in September. This is the highest transaction volume since July 2018 and almost 21% more than the 12-month average. Majority or 40.8% of the sales last month were for 4-room flats. This is followed by 24.3% for 4-room flats, 25.4% for 3-room flats and 7.5% for executive flats. The remaining figures were made up by sales of multi-generation and 2-room flats.
Although the prices of resale flats fell last month, it is still 0.1% higher than in the same period last year. However, compared to the peak of April 2013, prices have fallen 14.8%. In mature HDB estates, prices of resale flats fell 1.3% while on the contrary, prices of flats in non-mature estates rose 1.1%. Analysts are attributing the rise in sales volume to the new Enhance CPF Housing Grant (EHG) implemented in September this year.
Enhanced CPF Housing Grant could be the reason behind the spike in sales volume
The EHG makes up to $80,000 worth of grants available to eligible first-time flat buyers and this time regardless of whether they are purchasing a new or resale flat. This has opened up a whole level of accessibility to public grants for a buyer who may prefer to purchase resale units over new ones. In addition, there are no longer restrictions on the choice of flat type or the location of the flat.
More flats may enter the resale market in the next 3 months as more units reach their 5-year minimum occupation period (MOP). About 2,320 units are expected to be put on the resale market. The most expensive flat sold last month in a mature estate was a 5-room unit at The Pinnacle @ Duxton for $1.1 million. In the non-mature estate of Hougang, an executive maisonette was sold for $850,000.