Research data shows that 88.4% of the million HDB flats are five-bedroom and condominium style, which indicates a significant improvement in people's living environment and comfort.
Since the outbreak, the Ministry of Interior and lockdown measures have forced more families to stay in their homes almost all day.
This has greatly increased the urgent demand for more spacious five-bedroom, apartment-style, and larger homes, with the direct consequence of further directly driving up the price of resale units.
The 277 million-unit transactions in the first nine months of 2022 have already surpassed last year's full-year figure of 259 units, up 5.8% year-on-year.
Local million HDB transactions are still mainly concentrated in five-bedroom HDB flats in established towns, with million HDB flats accounting for only 1.4% of total resale transactions, but up from 0.9% a year ago.
The 10 most expensive resale HDB flats are five-bedroom units in prime locations such as Queenstown, Redhill, Central, Toa Payoh and Pisan.
However Woodlands, Bukit Batok, Punggol, Yishun and Hougang, five immature towns, also saw millions of condominiums for the first time this year.
Jurong East was also reported to have a million HDB flats a few days ago, but the figures have not been presented yet.
Actually, the demand has always been there. It is just looking for the right time to break through.
In September 2022 alone, there were 45 million HDB transactions, a record high of one million flat transactions in a single month, averaging about one or two transactions per day, a situation that worries the government.
Of course, the latest cooling measures, which require private home owners to wait 15 months after selling their homes before they can buy a non-subsidized resale HDB flat, will certainly ease the demand for resale HDB flats in the market to some extent.
The first round of cooling measures mainly curbed private residential demand by increasing ABSD and TDSR, especially for buyers who purchase properties for investment rather than owner-occupation purposes.
The second round of cooling measures raised loan eligibility thresholds in various ways to avoid excessive borrowing by homebuyers in response to the recent trend of sharp increase in market interest rates and to ensure that people are prudent in taking out loans to buy homes.
The immediate implementation of the latest policy, a 15-month waiting period for private building owners, will force these private building owners to turn their attention to the resale market for smaller private units.
In the secondary market, it will definitely slow down the price increase of larger units, so that young couples who need to change or upgrade their units will face relatively less competition and have more chances to buy the larger units they want.
At the same time, the PAP government did not cut the entire market across the board, which shows that they are looking out for people's livelihood.
However, some home buyers who really need to cash in on their retirement can have the opportunity to lock in their profits and dividends, which is in line with the government's consistent policy.
In fact, the local property is still seriously undervalued by the market.
The market is still predicted to continue to wait and sell, the momentum will just become relatively slow.
