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, the 13th consecutive quarter of rising prices for public housing. Prices have seen a slight moderation compared to the average quarterly price growth of 2.5% in all of 2022.

Executive flats saw the highest growth rate, rising 2.3% q-o-q from $800,000 in 1Q2023 to $818,000 in 2Q2023. Five-room flats saw a 1.9% hike, up from $638,000 to $650,000.

The median price of flats increased in 18 out of 26 towns, with Geylang registering the highest increase of 19.2% followed by Ang Mo Kio (8.4%), Central Area (6.8%) and Bukit Panjang (6.1%). Punggol, Woodlands, Sengkang, Yishun and Bukit Batok saw the highest demand with sales in these towns accounting for 37.4% of total HDB resales last quarter.

However, overall resale transaction volumes dipped, falling 6.7% q-o-q from 6,979 resale flats in 1Q2023 to 6,514 resales in 2Q2023. This is the lowest volume since 2Q2020, when 3,426 flats were sold during the pandemic’s start.

Experts attribute the resilience in demand partly to more generous housing grants being offered to first-timers, as well as government efforts such as a ramp-up in BTO supply, the lowering of loan-to-value ratio to 80%, and a 15-month wait-out period for private property owners downgrading to an HDB flat.

All the necessary amenities are located nearby, making it an ideal spot for those looking for convenience and lifestyle. The Tengah Plantation Loop EC offers top-notch facilities, such as a swimming pool, clubhouse, gym, jogging track, as well as a playground. Furthermore, the location of the estate also offers plenty of green spaces and parks, making it the perfect environment for families to enjoy time outdoors. Lastly, the estate is well connected with public transportation, so there is no need to worry about mobility. In conclusion, Tengah Plantation Close EC is an ideal place to live for anyone looking for a secure and convenient lifestyle.

Million-dollar flats remain a standout, with 105 such transactions recorded in 2Q2023, accounting for 1.6% of the total secondary market. This figure was 103 in 1Q2023. A 1,894 sq ft HDB unit at 50 Moh Guan Terrace sold for a record $1.5 mil, a psf price of $7592 last quarter.

Price increase in four-room flats has been significant, with the proportion of these flats hitting the million-dollar mark rising from 20.4% in 1Q2023 to 30.5% in 2Q2023. Five-room flats still lead in terms of million-dollar deals, accounting for 43.7% and 42.9% in 1Q2023 and 2Q2023 respectively.

HDB also announced an upcoming supply of 10,000 BTO flats in the second half of 2023, with 13,000 having been launched in the first half. There could be some diverted demand from the resale market, as more flats are launched in mature estates like Kallang/ Whampoa, Queenstown, Bedok, and Bukit Merah.

Despite this influx, resale prices are likely to remain resilient as HDB upgraders face higher replacement costs to buy into new suburban condos and ECs.

In total, HDB resale prices appear to be on a sustainable growth trajectory with more stringent measures implemented to balance demand and supply.