HDB resale flat prices climb 2.8% in 2Q2022 transaction volume soften for third quarter

Numbers released by HDB revealed that resale flat rates climbed by 2.8% q-o-q in 2Q2022, building on the 2.4% growth in 1Q2022. The final figures launched were more than the 2.6% flash estimate launched on July 1, says Wong Siew Ying, PropNex head of research & material. This brings the 1H2022 HDB resale cost increase to 5.3%.

Based on HDB resale deal information, average rates of 3-, four- and also five-room resale apartments varied from $368,000 to $610,000 in 2Q2022– up by 1.7% to 3.0% from the median resale rates in 1Q2022 of $358,000 – $600,000. “With even more newly MOP flats anticipated to strike the resale market in the coming months, we anticipate that median costs will remain firm,” says PropNex’s Wong.

According to HDB, 6,819 resale flats were negotiated in 2Q2022, concerning 1.7% less than the 6,934 apartments marketed in the previous quarter. Typically, purchase activity often tends to grab in the 2nd quarter after a lull in the very first quarter, states Lee Sze Teck, Huttons Asia senior director of research study. “This is the 3rd quarter of decrease and also indicate indicators of the marketplace shedding momentum,” he adds. “It is also the lowest quarterly sales because the breaker in 2Q2020.”

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Deal information revealed that non-mature communities such as Yishun (imagined), Sengkang, Punggol and also Woodlands were one of the most preferred estates in 2Q2022

HDB resale flat prices ought to trend in the direction of more security for 2H2022. “Rising interest rates and also more economical BTO flats with a shorter building and construction period will draw away some demand away from the resale market,” according to Huttons. Purchasers of a BTO flat will likewise have the ability to postpone their payment till vital collection, which will certainly permit buyers to aid the current high interest rate atmosphere. Huttons expect HDB resale prices to increase up to 10% in 2022.

Numbers released by HDB revealed that resale flat costs rose by 2.8% q-o-q in 2Q2022, structure on the 2.4% growth in 1Q2022. According to HDB, 6,819 resale flats were transacted in 2Q2022, regarding 1.7% reduced than the 6,934 apartments offered in the previous quarter. It was observed that there is a boosting number of resale apartments whose negotiated cost matches the appraisal price, leading to absolutely no money over assessment. HDB resale level rates need to trend towards even more security for 2H2022. These consist of first-time homebuyers who like ready-built flats, customers who have actually been valued out of the personal domestic market, upgraders in search of a bigger flat, as well as those who have actually marketed their private residence as well as are looking to buy an HDB level on the second market.

In spite of stronger resale costs, some flat proprietors might be less likely to sell as they perceive that the expense of buying a substitute residence of a similar dimension would be high in the current market

“The HDB resale market is on track to attain an additional year of healthy and balanced price growth,” PropNex’s Wong agrees. These include first-time buyers who prefer ready-built apartments, purchasers that have actually been priced out of the personal domestic market, upgraders in search of a larger flat, as well as those that have marketed their personal house and also are looking to acquire an HDB level on the additional market.
HDB Resale Price Index

Purchase information showed that non-mature towns Sengkang, Punggol, Yishun, Woodlands and also Jurong West were one of the most prominent estates in 2Q2022, representing over one-third of the quarter’s deals consisting of a variety of apartments that have recently attained the minimum occupation duration (MOP) amongst the resale purchases, includes Wong.

” The trend of million-dollar flats revealed no signs of abating,” says Huttons’ Lee. “They comprised more than 1% of overall resale level deals as well as might go beyond 300 in 2022. There may be much more larger flats in non-mature estates breaching the million dollar mark in the months in advance.”
Still, more purchasers are withstanding paying greater rates for a resale level, adds Huttons’ Lee. It was observed that there is a raising number of resale apartments whose negotiated price matches the assessment rate, resulting in no cash over evaluation. “Some customers might have applied for BTO apartments at Yishun which has a much shorter building period or tried their luck at May 2022’s SBF [sale of balance apartments] workout,” he thinks.

“With rates of interest readied to increase further, some customers may decide to play it safe as well as choose to acquire a resale flat, which is usually extra affordable compared to a private condominium,” adds Wong.
In spite of stronger resale rates, some level proprietors might be much less inclined to sell as they regard that the cost of purchasing a substitute home of a similar dimension would be high in the present market, according to Wong. “This continuous need and supply dynamics is anticipated to continue to be encouraging of HDB resale costs over the next couple of quarters,” she includes.