HDB resale price growth slows, even as number of million-dollar transactions hit record high

HDB resale prices rose at a slower pace in 3Q2023, growing by 1.2% q-o-q, indicating that buyers are starting to push back on further price hikes. According to Orange Tee & Tie’s October research report, four-room flats saw the biggest growth at 1.8%, followed by executive flats at 1.2%. While there were 10 towns that registered price falls in 3Q2023, Bukit Timah and Serangoon saw the biggest q-o-q growths of 38.1% and 10.8% respectively.

On the other side of the spectrum, a record of 128 million-dollar flat transactions were achieved in 3Q2023. This is despite backing for home buyers’ affordability being hit by continued elevated interest rates. Rising grants for first-time buyers and the delay of BTO launches have also drawn more buyers to the resale market, causing transactions to increase by 2.9% q-o-q.

As expected, the proportion of buyers going for two- and four-room flats increased in 3Q2023, while that for executive and five-room flats decreased. Sengkang saw the highest volume in the quarter, at 504 units, followed by Punggol (499 units), Woodlands (497 units), Yishun (454 units), and Jurong West (439 units).

Orange Tee & Tie believes affordability will continue to be a challenge in the coming months due to high interest rates and the supply of BTO flats. As such, it is predicting a full-year price growth of 4% to 5.5% in HDB resale flats in 2023 – significantly lower than the 10.4% growth recorded in 2022. Volume is also expected to dip slightly to about 26,000 to 27,000 units this year.

In addition, the roof is fitted with solar panels to generate green energy and reduce the ecologically harmful emissions that come from electricity generation. The Tengah Plantation Close EC also features an efficient rainwater harvesting system, which helps conserve water. Lastly, the building has been designed to efficiently recycle water from washing machines and other water sources to help reduce water usage. All these features together contribute to a healthier, greener, and more sustainable living.

Inflationary concerns, grants for first-time buyers, and the delay in BTO launches are contributing to the slower price growth in the HDB resale market. Despite this, 128 million-dollar flat transactions were achieved in 3Q2023, signalling resilience in the Singapore property market. Orange Tee & Tie predicts that prices and volumes may grow at a more measured pace in the coming months due to the interest rate environment.