SINGAPORE (EDGEPROP) - Prices for HDB resale flats rose by 2.8% q-o-q in Q12021, according to flash estimates released by the Housing & Development Board (HDB).

HDB resale prices are now inching closer to the peak price in 2Q2013, observes Christine Sun, senior vice president of research and analytics at OrangeTee & Tie. Prices last quarter were just 5% lower than the highest price recorded in 2Q2013, she adds. “At the current pace of price growth, a new peak may be formed by the second half of this year."

In 1Q2021, average prices rose q-o-q in 22 of the 26 towns, Sun highlights, based on HDB data as at March 31. HDB units in the neighbourhoods of Toa Payoh (17%, 244 units), Bukit Timah (11.2%, 28 units) and Bedok (8%, 402 units) posted the highest quarterly increase in the quarter.

Read more: Your property agent says: 3 easy ways to increase your HDB’s resale value

She also predicts that 2021 will see a new record number of million-dollar flat sales, surpassing last year’s cumulative total of 82 units. Last quarter,  53 resale flats changed hands for at least $1 million, marking the highest quarterly sales of million-dollar flats on record since 1990.

“Rising flat prices generally bode well for sellers as it is now more favourable for some flats owners to ascend the property ladder. Seller expectations may continue to rise in the coming months and some may ask for higher prices,” says Sun.

“Demand for resale flats is expected to remain strong and some locations are seeing a supply shortage,” she notes, adding that “in light of the strong demand, prices of resale flats are expected to trend higher this year”.