Singapore’s Housing Board (HDB) resale flat prices have continued their upward trend for the 14th consecutive quarter, with a 1.2% increase in Q3 2023. However, this growth is slower than the 1.5% seen in the previous quarter and below the average quarterly growth of 2.5% in 2022.
A Closer Look at the Numbers
Flash estimates from HDB revealed that the price growth in Q3 2023 was slower than the average quarterly growth in 2022. Despite the slower pace, this marks the 14th consecutive quarter of price increase since Q2 2020.
The primary driver for the overall price growth was the four-room flats, with average prices rising by 1.8% from $579,740 in Q2 to $590,454 in Q3. Executive flats followed closely with a 1.3% increase, moving from an average of $827,549 in Q2 to $838,120 in Q3.
Factors Influencing the Market
Property analysts believe that the resale market is stabilizing due to multiple property cooling measures. However, prices remain resilient due to consistent demand. Ms Christine Sun from OrangeTee & Tie highlighted that the slower price growth might be a result of buyers’ resistance, especially with concerns about inflation and affordability.
Huttons Asia’s Lee Sze Teck noted that buyers are more inclined to pay a premium for flats without resale restrictions in mature estates. With the upcoming reclassification of HDB flats in H2 2024, stricter resale conditions will be imposed on BTO flats in prime locations.
Million-Dollar Transactions on the Rise
PropertyGuru Singapore’s Tan Tee Khoon reported that an estimated 126 flats were sold for at least $1 million in Q3 2023, a rise from the 105 transactions in the previous quarter. If this trend continues, 2023 could see a record-breaking number of million-dollar flat transactions.
Resale Volume and Future Predictions
The number of HDB resale flats sold in Q3 2023 increased by 2.9% to an estimated 6,592, up from 6,409 in Q2. However, this is 9.7% lower than the same period in 2022.
Huttons’ Mr Lee predicts an influx of resale flats in the coming months, as more private homes are set to be completed. This could lead to a moderation in HDB resale flat prices, with an estimated growth of around 5% in 2023.
HDB has announced the launch of about 6,800 BTO flats in various towns in early October, with another 6,000 flats set to be launched in December. The board is on track to launch a total of 23,000 flats in 2023 and 100,000 flats from 2021 to 2025.
In conclusion, while HDB resale prices continue to rise, the pace has slowed, indicating potential stabilization in the market. With various factors at play, including new launches and property cooling measures, it remains to be seen how the market will evolve in the coming quarters.
Also learn about The Property Ladder Challenge: Rising Private Home Prices in Singapore.
