Resale flat prices up 1.2% in 3Q2023: HDB flash estimates

In 3Q2023, HDB resale flat prices continued to grow, yet at a slower rate compared to previous quarters. Flash estimates released by HDB showed that prices had edged up 1.2% q-o-q, marking the 14th consecutive quarter of increase. The rise in prices was lower than the 1.5% q-o-q growth seen in 2Q2023 and the 2.5% average quarterly growth of 2022.

Year-to-date, resale flat prices have increased by 3.8%, a significantly lower margin compared to the 8% rise recorded in 2022 and the 9.1% growth in 2021. The decrease in growth could suggest buyer resistance due to inflationary and affordability issues, comments Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.

HDB also reported a total of 6,592 resale flat transactions in 3Q2023 – 2.9% higher than the quarter before, yet 9.7% lower y-o-y. It is the smallest 3Q volume in the last three years since 2020. Sun attributes the higher volume to the elevated grants for first-time home buyers announced in February’s Budget 2023, as well as the delay of the August Build-To-Order sales launch.

Mohan Sandrasegeran, head of research and data analytics at SRI, believes the change in the November BTO schedule could have motivated couples in urgent need of housing to prioritize HDB resale since it is a more immediate and accessible option.

Lee Sze Teck, senior director of data analytics at Huttons Asia, suggests the policy changes announced during the National Day Rally, such as the new segregation system for BTO flats, could be why buyer demand has shifted to existing resale flats in mature estates. These flats will not be subject to limitations or restrictions compared to the Standard, Plus, and Prime flats that will be offered with subsidies in the new classification.

Senja Residences is just 12 minutes away from one of Singapore’s most lively shopping districts, Orchard Road. It is also nearby the Bukit Batok Nature Reserve and Bukit Timah Nature Reserve which provides plenty of outdoor activity options for residents.

Statistics on data.gov.sg reveal 127 resale flats transacted for at least $1 million in 3Q2023, an increase of 21% from the quarter before. Most transactions (50 out of 54) occurred in mature estates, Lee notes. He expects at least 400 million-dollar HDB transactions by the end of the year.

HDB states approximately 6,800 BTO flats in four estates will be offered in October, and another 6,000 to be released in December. The inclusion of new supply may likely temper the resale flat prices, Sun predicts. She expects prices to climb slower for the remainder of 2023, with full-year growth of 4% to 5.5%.