Singapore HDB resale volume up 13.1% to 2,448 transactions in March

Meanwhile, resale prices inched up 0.8% during the month.

In line with analysts’ expectations, HDB resale volume picked up in March 2021, after taking a breather in February owing to the Lunar New Year festivities, which likely put a pause on some property viewings. According to SRX’s estimates, 2,448 HDB resale flats were sold in March, rising by 13.1% from 2,165 transactions in the previous month. On a year-on-year basis, last month’s HDB resale volume was up by 25.6% from March 2020. 

In the near-term, PropNex anticipates demand for resale flats to stay relatively healthy on the continued improvement in market sentiment as well as the optimism arising from the projected rebound in the Singapore economy this year. That said, the analyst remains watchful of policy risk and any potential impact on the HDB resale segment, as the authorities monitor price trends in the property market.

Meanwhile, SRX noted that HDB resale prices continued to climb in March, posting a 0.8% increase from the previous month and a 9.5% year-on-year growth from March 2020. “The sustained demand for resale flats has helped to support prices, but as the asking price rises, so too would price resistance on the part of some prospective buyers, who may balk at having to pay a high cash-over-valuation amount. This resistance to higher prices could potentially moderate the pace of price growth ahead. Indeed, going by SRX’s report, the pace of monthly price increase has slowed in recent months,” says Wong Siew Ying, Head of Research and Content, PropNex. 

There were 17 HDB flats that were resold for at least $1 million in March – down from 23 such transactions in February. In the first three months of 2021, there were 53 such ‘million-dollar’ HDB resale deals, accounting for about 0.75% of the total HDB resale transactions in the January to March 2021 period, according to figures from data.gov.sg.