Age over location when it comes to determining HDB resale price, says Huttons

By EdgeProp Singapore | June 4, 2021 4:32 PM SGT
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SINGAPORE (EDGEPROP) - The age of a flat plays a larger role over whether the flat is located in a mature or non-mature estate, says Huttons in its research report. (See also: Your property agent says: 3 easy ways to increase your HDB’s resale value)
Breakdown of sold flats - EDGEPROP SINGAPORE
With connectivity and amenities improving in non-mature estates, some of the resale flat prices in non-mature estates have inched closer to those in mature estates, it found, citing the case of a five-room flat in Punggol that fetched $910,000, in comparison with a five-room flat in Clementi that commanded $1.095 million. (See also: Find HDB flats for rent or sale with our Singapore HDB directory)
Overall, resale prices for flats in non-mature estates have climbed more than those in mature estates, thereby narrowing the price gap between the two types of estates, finds the research consultancy.
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2-room flats - EDGEPROP SINGAPORE
The average prices of two-room flats fetched a premium, or are higher, than their counterparts in mature estates. This is due to the age of the flats — transactions of the two-room flats are on average less than 10 years old, compared to an average age of over 35 years in mature estates.
In this case, a decaying lease has a “greater impact” on the price of the flat, despite it being in a mature estate, it highlights.
3-room flats - EDGEPROP SINGAPORE
Meanwhile, for three-room flats, the price gap between mature estates and non-mature estates has narrowed over the years. Huttons attributes this to more newer flats being built and sold in non-mature estates, bringing down the average age of three-room flats sold in non-mature estates.
estimated flats for sale - EDGEPROP SINGAPORE
In 2011, there were 62,608 three-room flats sold in non-mature estates. This rose to 81,623 three-room flats in 2019, an increase of 19,015 flats over eight years. In contrast, there was an addition of 2,822 three-room flats in mature estates over the same period, 6.7 times less than those in non-mature estates.
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4-room flats - EDGEPROP SINGAPORE
The price gap remains stable for four-room flats between mature and non-mature estates, where it found that both the average age of transacted four-room flats in mature and non-mature estates started to decline around the same time.
5-room flats - EDGEPROP SINGAPORE
On the other hand, the price gap for five-room flats in non-mature estates and mature estates has narrowed. This is due to the lower supply of such flats in mature estates and a higher number of newer five-room flats in non-mature estates, which brought down the average age of flats in non-mature estates.
From 2011 to 2019, 5,063 five-room flats in mature estates were sold over the period. Over the same time, 25,319 five-room flats were added in non-mature estates.
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The research consultancy projects the price gap between non-mature and mature estates to narrow further as more transformation takes place and newer flats in non-mature estates are transacted in the market.

Table 1: Mature and Non-Mature HDB Estates in Singapore
Source: HDB

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