HDB Resale Market Report: Prices, Volume, and Million-Dollar Flats in 2023

HDB RESALE prices of public housing flats rose in the fourth quarter of 2023, but at a slower pace than in the previous quarter, according to data from the Housing and Development Board (HDB) on Friday (Jan 26). Q4 resale prices increased by 1.1 per cent, compared to the 1.3 per cent growth in the third quarter, and below the average quarterly growth of 2.5 per cent for 2022.

For the whole of 2023, resale flat prices grew by 4.9 per cent – the slowest growth since 2019, when prices edged up by only 0.1 per cent, said Christine Sun, chief researcher and strategist at OrangeTee Group. She added: “Last year’s price growth moderated due to a drop in housing demand, inflation worries and higher interest rates.”

Resale volume in the year fell by 4.2 per cent to 26,735 cases from 27,896 cases, based on HDB data. In Q4 alone, the number of resale transactions dropped by 2.2 per cent to 6,547 cases – the lowest fourth-quarter volume since 2020. Year on year, resale transactions were down 0.8 per cent.

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Property analysts attributed the Q4 slowdown to the larger supply of Build-To-Order (BTO) flats and the year-end lull. Nicholas Mak, chief research officer at Mogul.sg, said that the government succeeded in “curbing the surge” in resale flat prices through the aggressive increase in supply and shorter waiting times for new flats, as well as cooling measures. “Many homebuyers are losing the fear of missing out (Fomo),” he added. Lee Sze Teck, Huttons Asia’s senior director for data analytics, agreed, noting that buyers are increasingly resisting paying higher prices and cash-over-valuation for an HDB resale flat.

Three-room HDB flats in the central region had the highest median resale price, at S$481,500; the lowest was recorded in Geylang at S$345,000, according to HDB data. The highest median resale price for four-room flats was recorded in Queenstown at S$928,000, and the lowest came from Bukit Panjang at S$503,000. For five-room flats, the highest median price was recorded in Bukit Merah at S$959,000, and the lowest in Jurong West at S$588,000. The highest median resale price for executive flats was S$895,000, coming from Hougang, and the lowest median price, in Jurong West at S$698,000.

The number of million-dollar flats reached a record high of 470 transactions, even though these flats still represent a small fraction (2.1 per cent) of the market, said PropertyGuru Singapore country manager Tan Tee Khoon.

Adapt from The Business Times

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