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HDB resale apartments in older estates which are near top primary schools and shopping malls are more popular. But, newer apartments in non-mature estates such as Sengkang and Punggol will also be gaining popularity.
In the 2 months, 447 apartments were transacted in Sengkang while 446 apartments were transacted in Punggol. They’re followed closely by Tampines and Bedok, which found 343 and 268 apartments, respectively, changing hands in the 2 months.
Punggol and Sengkang also saw the greatest increase in resale prices in 2020 compared to 2011, based on research done by Huttons Asia. Punggol experienced a 181.5% growth, while Sengkang attained a 60.5% growth. They have been followed closely by Bukit Panjang, which saw 34.5% more apartments being transacted in 2020 compared to eight decades past, and Clementi, that saw a 20.1% growth.
Mark Yip, CEO of Huttons Asia, states:”One reason behind the growth in trades in areas like Punggol, Sengkang and Bukit Panjang, is that you will find numerous BTO (Build-To-Order) jobs in those cities and a lot have recently attained the minimum occupation period.” He adds:”Newer apartments are very popular and fetch high prices as they’re deemed to be like new.”
Across the board, you will find far more resale transactions since there are far more BTO flats attaining minimum occupancy interval (MOP). This year, there’ll be 25,530 apartments reaching MOP.
“Punggol and Sengkang will be the two most well-known cities since there are many comparatively new apartments under a decade young and old households residing there,” says Mak. These places also provide outdoor recreational alternatives for exercise, people transport connectivity, and retail stores in town center, ” he adds.
In 2020the best five cities where apartments between five and five years were offered were Sengkang (777 apartments ), Yishun (562 apartments ), Punggol (550 apartments ), Bukit Panjang (495 apartments ) and Tampines (276 apartments ), while from the initial two weeks of 2021, the leading ten cities where apartments between five and five years have been marketed were Punggol (338 apartments ), Sengkang (211 apartments ), Bukit Panjang (91 apartments ), Yishun (82 apartments ) and Queenstown (60 apartments ).
Rarer apartment types also bring higher prices, like maisonettes and executive apartments, says Christine Sun, senior vice president of analytics and research in OrangeTee & Tie.
“For the bigger flats such as five-room apartments, the HDB has reduced the distribution or stopped building them. Therefore, buyers that favor bigger flats have turned into the resale marketplace,” states Huttons’ Yip. He considers that the trades of these apartments climbed around 10% y-o-y at 2020, presumably on account of the demand for more distance as work-from-home (WFH) arrangements accumulated rate and more empty-nesters transferred to a smaller house unit.
In terms of million-dollar HDB apartments, Yip considers they control such costs due to their location, dimensions and layout. “Million-dollar HDB flat trades are a minority, which makes up less than 1% of overall trades annually.