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While demand for HDB resale flats remained robust because of construction delays, it has probably peaked and stablised. Similarly there is resistance towards paying more for a HDB flat with price gains staying at the same level as the previous months.
Another 20 flats have been sold for $1 million and more in Oct. While the price per sq ft at more than $1,000 psf for some flats appears eye popping, buyers are unlikely to be able to find similar homes in the Central Area at such price points. Hence these flats are likely to maintain their prices. The momentum should continue for the last two months of 2021 and bring the number of $1 million flats to possibly 230 for the whole of 2021.
The announcement of a new housing model and restrictions for flats in prime locations may result in a knee jerk reaction on the ground. Resale flats surrounding the prime locations may see more enquiries and possibly more demand because they do not carry the same restrictions.
Transaction volume for 2021 is estimated to be between 29,000 and 30,000 flats. Prices may increase by another 2% in the last two months of 2021, bringing the price gains for the whole year to more than 11%, the largest gains since 2010.
