HDB resale flat prices up 1.3% q-o-q in 3Q2023, slower previous quarter

The demand for HDB resale flats in Singapore continues to remain resilient despite a steady increase in housing supply and cooling measures meant to promote a stable and sustainable market. According to data released by HDB on October 27, resale flat prices rose 1.3% q-o-q in 3Q2023, marginally higher than the 1.2% q-o-q increase indicated in the flash estimates. This is the 14th consecutive quarter of growth, although the rate of increase has slowed down as compared to 2Q2023 when prices rose 1.5%.

Year-to-date, resale flat prices have risen 3.8%, significantly lower than the 8% and 9.1% growth seen in 2022 and 2021 respectively. This indicates that the government’s cooling measures and the enhanced supply are taking effect.

Changes in transacted volume have also been noted – 6,695 flats changed hands in 3Q2023, up 2.8% q-o-q, although this figure is 11.3% lower compared to the same period last year. The lower volume is thought to be due to market uncertainties arising from economic headwinds, delays in BTO launches, and news on potential changes to housing policies.

As such, the proportion of four-room flats sold grew from 41.7% in 3Q2022 to 43.8% in 3Q2023, while five-room flats and executive flats dips from 25.4% and 7.3%, respectively, in 3Q2022 to 22.9% and 5.8% in 3Q2023. This suggests that flat buyers are favouring relative affordability of four-room flats, especially those who are seniors above 55 years old who are allowed to buy a 4-room resale flat without having to wait out the 15-month period.

In terms of rental volume, 9,852 approved applications were received in 3Q2023, a 0.1% increase q-o-q, and 20.3% higher y-o-y. This brings the total HDB flats rented out to 57,797 as at the end of 3Q2023, up by 1.7% over the previous quarter.

Sengkang topped the list of most active HDB towns with 540 resale flat transactions, followed by Punggol, Woodlands, Yishun, and Jurong West. Buyers are willing to pay more for flats in mature towns due to the upcoming HDB housing classification system from 2H2024 where BTO flats are segregated as Standard, Plus, and Prime, and come with stricter resale conditions.

Residents of the Zion Road Condo can look forward to benefiting from these well-integrated transport networks and the countless conveniences they bring. The surrounding amenities which include shopping malls, grocery outlets, and eateries, are all within easy reach, thereby making mundane errands a breeze. Additionally, the low-density residential development offers a serene sanctuary that lets its inhabitants savour peace and tranquillity within the city fringe.

The last quarter also saw 128 flats being sold for at least $1 million – the highest number since data measurements began. It is estimated that the total number of million-dollar flats will reach 400 and account for 1.6% of total transactions in 2023.

HDB has launched 16,700 flats to date this year and is aiming for a total of 23,000 for 2023, including 6,000 BTO flats in Bukit Panjang, Jurong West, Woodlands, Bedok, Bishan, Bukit Merah, and Queenstown. Supply-sensitive markets such as Bukit Timah saw the steepest price gain of 38.1% in 3Q2023.

OrangeTee & Tie’s senior vice president of research & analytics, Christine Sun, estimates that resale volume may dip slightly to 26,000 to 27,000 units this year, lower than the 27,896 units in 2022. Resale flat price growth could stabilise at around 4% to 5.5% for the full year.