Appetite for public housing in excess of S$1 million ($776,940) is growing strongly in Singapore, with the number of units sold so far this year surpassing all of 2023 and hitting a record in the third quarter, market data showed.
In Singapore, eight out of 10 of its citizens live in public housing built and sold by the government and their affordability is a key issue alongside high living costs going into a general election next year.
According to real estate agency OrangeTee Group, a record 328 apartments were sold at prices above S$1 million in the third quarter compared to 128 in the same period in 2023, with 747 units sold so far this year beating the 469 in 2023.
Though million-dollar flats represented just 4% of all resale flats in Q3, according to government data, they track an increase in resale prices of public housing in Singapore, one of the world's most expensive cities.
Singapore's Housing and Development Board (HDB) estimates the resale price index of all public flats increased by 2.5% in the third quarter of this year from the second quarter.
According to OrangeTee, unit prices on average grew 3.0% from S$603,585 to S$621,573 over the same period. Measures introduced every few years including in 2022 to contain prices failed to subdue demand for million-dollar flats and the government in August again sought to cool the market by reducing how much buyers can loan from the state.
In July, a new record price was set when a 111 sq m (1,195 sq ft) unit in a prime location sold for S$1.73 million ($1.35 million). Christine Sun, chief researcher at OrangeTee, expects the number of million-dollar transactions this year to double that of last year.
