HDB figures show that the median resale prices of HDB flats in some non-mature districts have risen by more than 40% since the first quarter of 2020 (before the recent property boom)!
The authorities have implemented two property market cooling measures within nine months: the first on December 16 last year and the second on September 30 this year.
Therefore, the latest HDB resale figures for the third quarter of 2022 reflect the market conditions prior to the latest cooling measures.
Red ants living in non-mature areas are alone in their secret pleasure, not expecting their own HDB flats to have a head start.
First, let's understand what are the mature and non-mature HDB areas.
The HDB website currently lists the following 16 areas as mature HDB zones.
Ang Mo Kio, Bedok, Bishan, Redhill, Bukit Timah, Central, Clementi, Geylang, Kallang/Huangpu, Pasir Ris, Queenstown, Serangoon, Tampines, Toa Payoh and Malimbari.
There are 11 non-mature HDB districts, including.
Bukit Batok, Bukit Panjang, Choa Chu Kang, Hougang, Jurong East, Jurong West, Punggol, Sembawang, Sengkang, Woodlands and Yishun.
A five-bedroom penthouse unit in Punggol Sapphire changed hands for $1,198,000, the highest resale price for a non-established HDB flat in September this year.
The data shows that the largest increase in median resale price of five-room HDB flats was in the non-established area, Choa Chu Kang, by up to 40%!
The 10 municipalities with the highest median resale price increases for HDB flats are.
Choa Chu Kang, Bukit Batok, Sembawang, Woodlands, Ang Mo Kio, Jurong West, Jurong East, Hougang, Toa Payoh, and Yishun.
They all increased by more than 26%.
It is worth noting that all the other 9 are non-mature districts except Toa Payoh which is a mature district.
Sun Yanqing, director of OrangeEasy Industrial Research and Consulting, analyzed that five-bedroom HDB flats have become increasingly popular in recent years, mainly due to the lack of market supply and the growing national demand for larger living spaces.
The number of five-room pre-purchase HDB flats launched in recent years is much lower than the number of four-room flats, especially in mature districts where demand exceeds supply.
Then again, more and more companies are adopting a mixed working pattern, more people can work from home and therefore the demand for wider living space is increasing.
Some people want more space to create a home office, and some have multiple family members working from home at the same time.
As prices rise, some people are concerned that a five-bedroom unit may be "out of reach" in the future and are choosing to buy early.
Sidney Lee, senior research director at Huttons, also said that in the second quarter of 2020, the second quarter of the year, when the epidemic blocking measures are in place, construction and home buying activities stop or slow down significantly. The pent-up demand pushed up the price of resale HDB flats when the country's epidemic prevention measures were loosened.
He also believes that the epidemic made people realize the need for more living space as homes became offices, schools, and places to relax. As a result, there has been a shift in demand for five-room and above units.
ERA's Head of Industrial Research and Consultancy, John Mak, also believes that the increased demand for larger flats has led to more resale HDB flats being sold at million-dollar high prices.