Million-dollar flats may make up 1.6% of total HDB resale volumes in 2023.

Expect more HDB flats to be resold at over $1m in the rest of 2023, analysts said.

These million-dollar resale flats will remain elevated for the most part of 2023, as it may still be cheaper than buying a private resale condo, said Siew Ying Wong, head of research and content, PropNex.

“The number of “million-dollar” resale flats sold has consistently tipped over the 30-unit mark each month for the most part of 2023, and we expect the figure to stay elevated as high private home prices continue to channel some buying interest to such resale flats,” Wong said. 

“Buyers may be willing to part with $1m or more for a resale flat as it would still be cheaper than a private resale condo in the vicinity,” he added.

If the sales momentum continues, there may be 400 or more-million-dollar HDB resale flats in 2023, said Huttons Asia CEO Mark Yip.

“On the whole, it may make up 1.6% of total sales volume in 2023,” Yip added.

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Overall, HDB resale prices are expected to rise marginally through 2023, although at a much slower rate than in 2021.

The slower price increase could be attributed to demand diverted to the BTO market since more projects were launched for sale over the past two years, noted Christine Sun, senior vice president of research & analytics, OrangeTee & Tie. 

“Moreover, resale prices have reached record highs in many locations and affected the affordability threshold of some buyers. Thus, there is now limited upside potential for prices to trend significantly higher,” Sun said.

“Buyers continued to resist paying more for their flats, keeping the increase in prices to less than 1% for the third consecutive month,” Hutton’s Yip noted.

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“There is an increase in the proportion of buyers who are priced out of flats in the mature estates. They are moving to the non-mature estates and pushing up the proportion of sales to more than 60% for the past four months. The stronger demand for flats in non-mature estates saw prices eking out a 0.4% gain compared to a -0.4% decline in mature estates,” he added.

Yip said that they expect HDB resale flat transactions to range between 24,000 to 26,000 for the whole of 2023, whilst resale flat prices will rise by not more than 5% for the year.