New projects - HDB's resale price increased by 1.4% in Q2, but below the 2022 quarter average; sell less apartments.
New projects - SINGAPORE - Housing Council apartment prices rose in the second quarter of 2023, up 1.4%, a faster pace than the 1% in the first quarter, quick estimates from HDB showed on Monday.
This is the 13th consecutive quarter of price increases since Q2 2020, when prices began to rise after Singapore emerged from a two-month quarantine period during the Covid-19 pandemic.
However, HDB's resale price is showing signs of adjustment since real estate cooling measures were implemented in December 2021. The 1.4% increase is lower than the average quarterly increase of 2.5% in 2022.
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Fewer units New launch condo also changed hands in the second quarter of 2023, with an estimated resale of 6,409 units. The data shows that this is 4.6% lower than the 6,720 units resold in the same period of 2022 and marks the lowest resale volume in the past three years since Q3 2020.
National Development Secretary Desmond Lee, in a Facebook post on Monday, said signs of continued regulation in both the private resale and HDB markets were evident in the quick estimates, with growth slowed on the public housing front.
Since December 2021, the authorities have taken three rounds of measures to cool down the real estate market and regulate demand.
Measures include introducing a 15-month waiting period for private property owners looking to buy HDB resale apartments and reducing the loan-to-value limit on HDB home loans for two round – from 90% to 85% and one further down to 80% – to ensure prudent borrowing in times of high interest rates.
HDB is still on track to launch a total of 100,000 apartments between 2021 and 2025.
“With these measures, we see resale price growth under control,” HDB said.
Christine Sun, senior vice president of research and analysis at OrangeTee & Tie, said the price increase in the second quarter mainly came from five-room apartments.
The median price of these apartments rose 1.9 percent from $638,000 in the first quarter to $650,000 in the second quarter, she said.
Ms. Sun said a total of 103 HDB resale apartments were sold for at least US$1 million in the second quarter, on par with 103 units in the first three months of the year.
Notably, a 176-square-foot semi-detached apartment at Moh Guan Terrace in Tiong Bahru changed hands for a record $1.5 million in June, despite the 99-year lease remaining about 48 years.
In terms of housing supply, a total of 13,000 Build to Order (BTO) units will be launched in the second half of 2023, approximately 31% higher than the 9,923 units launched in the first half of the year, HDB said.
These numbers can be considered as more project details are consolidated closer to the launch date, it added. BTO apartments are usually launched in February, May, August and November.
In August, about 6,700 BTO New projects in towns such as Choa Chu Kang, Kallang/Whampoa, Queenstown and Tengah will be offered for sale.
Another 6,300 apartments in towns such as Bedok, Bishan, Bukit Merah, Bukit Panjang, Jurong West, Queenstown and Woodlands will be launched in November.
Starting with the August sale, stricter rules to reduce dropout rates will apply to first-time BTO registrants. Those who do not choose BTO apartments when invited will lose their first-time registrant priority status and be treated as second-time registrants in subsequent apartment applications for one year.
Mr. Lee said the government has continued to increase housing supply to meet demand. “We will continue to closely monitor the real estate market and adjust our policies as needed,” he wrote on Facebook.
The supply of BTO apartments has increased by 35% in recent years – from 17,100 apartments in 2021, to 23,200 apartments in 2022 and 23,000 apartments in 2023.
Adapt from The Straitstimes News
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