{"id":59935,"date":"2022-09-30T14:56:32","date_gmt":"2022-09-30T06:56:32","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=59935"},"modified":"2022-10-06T17:21:51","modified_gmt":"2022-10-06T09:21:51","slug":"record-number-million-dollar-hdb-resale-flats-sold-september-2022","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/record-number-million-dollar-hdb-resale-flats-sold-september-2022\/","title":{"rendered":"Record number of million-dollar HDB resale flats sold in September 2022"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p>Following recent news about HDB resale flats hitting the million-dollar mark in the suburbs, the number of million-dollar flats sold has hit a record high in September 2022.<\/p>\n<p>According to Pow Ying Khuan, Head of Research at 99 Group, as of 30 September, 45 HDB resale flats have breached the million-dollar mark this month.<\/p>\n<p>The <a href=\"https:\/\/www.99.co\/singapore\/insider\/monthly-record-million-dollar-flat-transactions-broken-again-december-2021\/\" target=\"_blank\" rel=\"noopener\">previous high was in December 2021<\/a>, when 36 HDB resale flats were sold for at least a million dollars.<\/p>\n<p>This also means that as of writing, 277 million-dollar flats have been sold in the first nine months of this year, surpassing the record number of 259 such flats sold in 2021.<\/p>\n<h2>Cooling measures for the HDB resale market<\/h2>\n<p>In light of the increasing interest rates by the US Federal Reserve, the authorities have <a href=\"https:\/\/www.99.co\/singapore\/insider\/restrictions-lower-ltv-limits-affect-home-loan-borrowers-and-private-to-hdb-resale-flat-buyers\/\" target=\"_blank\" rel=\"noopener\">introduced a few property cooling measures<\/a>. This includes increasing the medium-term interest rate floor used to compute the <a href=\"https:\/\/www.99.co\/singapore\/insider\/property-jargon-of-the-day-total-debt-servicing-ratio-tdsr\/\" target=\"_blank\" rel=\"noopener\">Total Debt Servicing Ratio (TDSR)<\/a> and <a href=\"https:\/\/www.99.co\/singapore\/insider\/property-jargon-of-the-day-mortgage-servicing-ratio-msr\/\" target=\"_blank\" rel=\"noopener\">Mortgage Servicing Ratio (MSR)<\/a>.<\/p>\n<p>For <a href=\"https:\/\/www.99.co\/singapore\/mortgages\" target=\"_blank\" rel=\"noopener\">bank loans<\/a>, the interest rate floor has been increased from 3.5% to 4% per annum.<\/p>\n<p>For <a href=\"https:\/\/www.99.co\/singapore\/insider\/home-loan-hdb-concessionary-loan\/\" target=\"_blank\" rel=\"noopener\">HDB loans<\/a>, there will also be an interest rate floor of 3% per annum.<\/p>\n<p><a href=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/09\/Interest-rate-floor.jpg\" class=\"img-link media-img img-link media-img\"><img decoding=\"async\" class=\"alignnone wp-image-59916\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/09\/Interest-rate-floor.jpg\" alt=\"Interest rate floor to compute TDSR and MSR\" width=\"600\" height=\"148\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/09\/Interest-rate-floor.jpg 846w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/09\/Interest-rate-floor-150x37.jpg 150w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p>On top of increasing the medium-term interest rate floor, two measures that target the public housing market (especially the resale market) were introduced.<\/p>\n<p>The loan-to-value (LTV) ratio limit for HDB housing loans has been lowered from 85% to 80%.<\/p>\n<p>These measures will reduce the loan amount property buyers can take, affecting their home affordability.<\/p>\n<p>For instance, with the new stress-test interest rate of 3% for a 25-year HDB loan, a couple with a combined income of S$6,600 may no longer afford an HDB resale flat priced at S$540,000 (the median resale flat price in September 2022). That is unless they are eligible for various <a href=\"https:\/\/www.99.co\/singapore\/insider\/resale-hdb-grants-how-much-2\/\" target=\"_blank\" rel=\"noopener\">resale grants<\/a>, such as the Family Grant and the Enhanced CPF Housing Grant.<\/p>\n<p>The LTV for HDB housing loans was <a href=\"https:\/\/www.99.co\/singapore\/insider\/cooling-measures-announced-absd-tdsr-ltv-16-december-2021\/\" target=\"_blank\" rel=\"noopener\">previously reduced in December 2021<\/a>, from 90% to 85%. This was also when the previous round of cooling measures was introduced, with the <a href=\"https:\/\/www.99.co\/singapore\/insider\/property-jargon-of-the-day-additional-buyers-stamp-duty-absd\/\" target=\"_blank\" rel=\"noopener\">Additional Buyer\u2019s Stamp Duty (ABSD)<\/a> raised and the TDSR reduced.<\/p>\n<p>Interestingly, it was also the same month when a record number of million-dollar flats sold was previously observed.<\/p>\n<p>But the more unexpected measure is the 15-month wait for private residential property owners (PPOs) and ex-PPOs before they can buy a non-subsidised HDB resale flat.<\/p>\n<p>This may have been a response to the increasing number of million-dollar HDB resale flats in recent months, with some of such transactions occurring in suburban estates for the first time this year, such as <a href=\"https:\/\/www.99.co\/singapore\/insider\/yishun-flat-sold-1-million-february-2022\/\" target=\"_blank\" rel=\"noopener\">Yishun<\/a>, <a href=\"https:\/\/www.99.co\/singapore\/insider\/first-million-dollar-flats-sold-pasir-ris-woodlands-may-2022\/\" target=\"_blank\" rel=\"noopener\">Woodlands, Pasir Ris<\/a>, <a href=\"https:\/\/www.99.co\/singapore\/insider\/first-million-dollar-flats-sold-bukit-batok-marine-parade-july-2022\/\" target=\"_blank\" rel=\"noopener\">Bukit Batok<\/a>, <a href=\"https:\/\/www.99.co\/singapore\/insider\/first-million-dollar-hdb-resale-flats-sold-tampines-punggol\/\" target=\"_blank\" rel=\"noopener\">Tampines and Punggol<\/a>.<\/p>\n<figure id=\"attachment_59262\" aria-describedby=\"caption-attachment-59262\" style=\"width: 600px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/09\/punggol-sapphire-1m-flat.jpeg\" class=\"img-link media-img img-link media-img\"><img decoding=\"async\" class=\"wp-image-59262\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/09\/punggol-sapphire-1m-flat.jpeg\" alt=\"First million dollar flat at Punggol\" width=\"600\" height=\"445\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/09\/punggol-sapphire-1m-flat.jpeg 1201w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/09\/punggol-sapphire-1m-flat-150x111.jpeg 150w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/a><figcaption id=\"caption-attachment-59262\" class=\"wp-caption-text\">Interior of the first million-dollar flat sold in Punggol. Image credit: Yuna Lim<\/figcaption><\/figure>\n<p>Christine Sun, Senior Vice President of Research &amp; Analytics at OrangeTee &amp; Tie, added that over the past month, about one to two flats have been sold for a million dollars every other day.<\/p>\n<h2>Will these cooling measures reduce HDB resale prices and the number of million-dollar HDB resale flats?<\/h2>\n<p>With the affordability of property buyers reduced, HDB flat sellers will have to readjust their selling price expectations. Those who were planning to sell their flats for at least a million dollars may also face price resistance.<\/p>\n<p>Likewise, analysts expect HDB resale prices and demand to stabilise, with Sun predicting that there could be a price decrease of 2% in Q4.<\/p>\n<p>According to Lee Sze Teck, Senior Director (Research) at Huttons Asia, the recent spate of million-dollar flat transactions was partly driven by private property owners.<\/p>\n<p>\u201cMany of them paid for the resale HDB flats in cash without the need for a loan. This has an overall uplifting effect on the HDB resale market.\u201d<\/p>\n<p>The 15-month wait, in particular, will reduce demand from private homeowners who are downsizing their private property to HDB resale flats, who may have been more willing and able to afford a million dollars for a resale flat.<\/p>\n<p>Sun believes that it may cool the market for a while and slow down the pace of the price increase for bigger flats, allowing younger couples a better chance of securing such flats.<\/p>\n<p>At the same time, Lee added that the impact on the resale transaction volume would be minimal, given that the transaction volume for million-dollar flats is not large in the first place.<\/p>\n<h2>What do you think of the latest cooling measures? Let us know in the comments section below.<\/h2>\n<p>If you found this article helpful, 99.co recommends <a href=\"https:\/\/www.99.co\/singapore\/insider\/first-million-dollar-hdb-resale-flats-sold-tampines-punggol\/\" target=\"_blank\" rel=\"noopener\">First million-dollar HDB resale flats sold in Tampines and Punggol<\/a> and <a href=\"https:\/\/www.99.co\/singapore\/insider\/new-all-time-high-hdb-resale-5-room-skyterrace-dawson\/\" target=\"_blank\" rel=\"noopener\">New all-time high HDB resale: 5-room HDB in Dawson sold for S$1.418 million.\u00a0<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Following recent news about HDB resale flats hitting the million-dollar mark in the suburbs, the number of million-dollar flats sold has hit a record high in September 2022. According to Pow Ying Khuan, Head of Research at 99 Group, as of 30 September, 45 HDB resale flats have breached the million-dollar mark this month. The&hellip;<\/p>\n","protected":false},"author":111,"featured_media":59057,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"no","_lmt_disable":"no","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53631,53643,57131],"tags":[57186,53787,53644,54586,57163,53680],"persona":[57125,57127],"class_list":{"2":"type-post","18":"entry","19":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - 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