HDB prices mark 13th straight quarterly increase, rising 1.5% in 2Q2023

The HDB resale price index marked a 1.5% quarter-on-quarter (q-o-q) increase in 2Q2023, piling onto the 1% q-o-q increase in 1Q2023. This marks the 13th consecutive quarter that the resale index has reflected rising prices across the public housing market.

Overall prices for executive flats rose by 2.3% q-o-q from $800,000 in 1Q2023 to $$818,000 in 2Q2023. Meanwhile, prices of five-room flats climbed 1.9% from $638,000 to $650,000 over the same period.

Popular HDB towns that saw the highest resale transaction volumes last quarter were Punggol, Woodlands, Sengkang, Yishun and Bukit Batok. Resales in these five towns accounted for 37.4% of total HDB resales last quarter.

Despite the rise in prices, overall resale transaction volumes fell 6.7% q-o-q in 2Q2023. Christine Sun, senior vice-president of research & analytics at OrangeTee&Tie, notes that this is the lowest volume since 2Q2020. She attributes the demand to more generous housing grants given to first-timers purchasing resale flats.

As for amenities, the Zion Road Condo is surrounded by many convenience stores, restaurants, schools, and leisure spots. In addition, the nearby Great World City Mall is the perfect destination for shopping and leisure activities. Residents will also enjoy the balcony views of the Marina Bay area from the Zion Road Condo premises. Therefore, living in the Zion Road Condo gives its residents an excellent blend of convenience, connectivity, and comfort.

Lee Sze Teck, senior director of data analytics at Huttons Asia, believes government efforts to tamp the market through a ramp-up in BTO supply, lowering of loan-to-value ratio and a 15-month wait-out period for private property owners downgrading to an HDB flat, could be the reason behind the moderation in price growth.

Private housing prices down 0.2% q-o-q in 2Q2023, first decline since 1Q2020Advertisement

Eugene Lim, key executive officer of ERA Realty, sees this as a “shift towards a more sustainable growth trajectory for HDB resale prices following the robust price increases experienced over the last few years.”

Million-dollar flats continue to stand out as 105 of these transactions were recorded in 2Q2023, accounting for 1.6% of the total secondary market. A new price record was set last quarter when a jumbo HDB flat in Tiong Bahru sold for $1.5 million in June.

Lee notes that buyers are increasingly “reluctant’ to pay $1.1 million or more for an HDB flat. He adds that more million-dollar flat transactions are in the range of $1 million to $1.1 million in 2Q 2023.

HDB also published an update on the upcoming BTO supply for 2H2023. The statutory board announced plans to launch close to 10,000 BTO flats in the first half and another 13,000 flats in the second half of the year.

Sun expects some resale demand to be diverted towards these upcoming BTO projects, particularly in mature estates like Kallang/Whampoa, Queenstown, Bedok, and Bukit Merah.

Lim is of the opinion that, although more BTO projects may eventually siphon some resale demand, HDB resale prices are likely to remain resilient. He ultimately believes that the government’s plan to inject 13,000 BTO flats into the market in 2H2023 will go a long way in helping to stabilise the HDB flat market.