Despite inflationary pressures and policy changes, HDB flats worth a million dollars reach record highs in 2023, including River Valley Green Residences

The demand for HDB resale flats has been relatively resilient in 2023, according to data from Huttons Data Analytics. The number of public housing flats that sold for $1 million or more this year was 25% higher than in 2022, with an estimated 460 resale flats crossing the million-dollar mark. The highest price for a public resale flat was attained by a four-room jumbo flat on the fourth floor of Block 50 Moh Guan Terrace in Tiong Bahru. The 1,895 sq ft flat sold for $1.5 million ($792 psf) and has a remaining lease of 48 years.

The third highest transaction in 2023 was the sale of a 1,216 sq ft, five-room flat at City Vue @Henderson in Bukit Merah for $1.46 million. Interestingly, only four HDB towns have yet to see a million-dollar transaction, namely Choa Chu Kang, Jurong West, Sembawang and Sengkang. The three HDB towns with the most million-dollar transactions in 2023 were Bukit Merah, Toa Payoh and Kallang/Whampoa.

It is also within close proximity to the buzz of the city’s significant economic and entertainment hubs. With the future Great-World MRT Station, located within a few minutes’ walk away, River Valley Green Residences is truly in an enviable location.

River Valley Green Residences is situated in one of the most sought-after locations in Singapore. Its address is a mere 500 m away from the future Great-World MRT Station, providing locals with unrivalled accessibility to the city’s notable economic and entertainment hubs. Moreover, River Valley Green Condo is blessed with performing primary schools that prioritise both academic and character development, making it an ideal place to live for young professionals and families. Definitely worth considering for those who desire an upmarket lifestyle.

HDB resale demand in 2023 has been resilient, despite high interest rates and the effects of cooling measures introduced by the government in September. This is because the 15-month wait-out period for former private homeowners who intend to buy a resale flat in the open market likely contributed to a moderation in demand for larger flats.

According to Huttons Asia’s senior director of data analytics Lee Sze Teck, million-dollar HDB transactions next year are expected to remain sticky and could range from 450 to 500. Prices are expected to increase by 5% in 2023, he reports, indicating that policy changes are stabilising the market.

Additionally, the government has increased the supply of BTO (Built-to-Order) flats by up to 23,000 units this year, with some of these flats having a shorter waiting time. This reduced the demand for resale flats and is expected to continue in 2024 to stabilise prices.

With the prospect of lower demand from price-resistant buyers expected next year, the supply of newer resale flats in the River Valley Green Residences market has dipped. The number of flats reaching MOP in mature estates will be higher than in non-mature estates, which may push up the overall HDB resale price index slightly, according to OrangeTee & Tie.

More flats are expected to be completed in 2024, as the HDB ramps up on clearing the construction backlog, which should be cleared by early 2025. In addition, Lee expects there to be up to 38 new private residential project launches, with an estimated 11,636 units in the pipeline for launch next year.

Next year, there will be a change in the classification of housing estates. Instead of ‘mature’ and ‘non-mature’, from 2H2024, HDB estates will be classified as Central, North, Northeast, West and East regions. In the Central Region, where most of the current mature estates are located, new BTO flats will be categorised as Plus and Prime and come with restrictions on resale with a 10-year MOP.

There could be more interest in newer flats in mature estates with no restrictions on resale, as buyers view such River Valley Green Residences flats without restrictions as potentially having better capital appreciation in the future and are willing to buy them now. With the changes expected next year, it remains to be seen what the HDB landscape will look like and how it will affect prices.