SINGAPORE (EDGEPROP) - HDB resale prices rose 2.7% q-o-q and 12.3% y-o-y in 3Q2021, registering an increase for the sixth straight quarter, according to HDB flash estimates.

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Prices have already surpassed the peak of 2Q2013 by 0.7% and have risen by 8.9% year to date, notes Christine Sun, senior vice-president of research & analytics at OrangeTee & Tie.

“Prices are rising as demand is outstripping supply especially for flats that are well-located or with good attributes. The current housing boom is largely fuelled by couples turning from the BTO market to the resale market, and upgraders who are buying bigger flats,” she says.

“If construction delays are prolonged, more people may turn to the HDB resale market.  The increased demand may push prices higher in the coming months,” she adds.

In 3Q2021, only 17 out of 26 HDB towns saw price increases compared to price increases in 22 HDB towns in 2Q2021. The biggest price increase was in Bukit Timah at 12.4% while the biggest fall was in Marine Parade at 9.1%, notes Lee Sze Teck, senior director (research), Huttons Asia. (Find HDB flats for rent or sale with our Singapore HDB directory)

“While volume in 3Q2021 is estimated to be 19.8% higher quarter-on-quarter, the slower price increase indicates price resistance has set in,” says Lee.

Some neighbourhoods saw price declines, which could be due to decaying leases, he notes. In Toa Payoh, HDB resale prices fell for the second consecutive quarter. Marine Parade, another HDB town with ageing flats also saw prices declining over the quarter.

Meanwhile, 67 HDB flats were sold for $1 million and above, 14 more than in 2Q2021. The most expensive flat sold in 3Q2021 was a 10-year-old 5-room flat at Bishan St 24.