Resale flat prices up 1.2% in 3Q2023: HDB flash estimates

In 3Q2023, HDB resale flat prices saw a slower rate of growth compared to the previous quarter and the quarterly growth from the previous year. According to flash estimates released by HDB on Oct 2, resale prices were up 1.2% q-o-q as of 3Q2023, which marks the 14th consecutive quarter of growth. This is lower than the 1.5% q-o-q growth seen in 2Q2023 and the 2.5% q-o-q growth recorded in the same period in 2022.

Year-to-date, resale flat prices have grown 3.8%, lower than the 8% growth seen in 2022 and the 9.1% seen in 2021. Additionally, the number of resale flat transactions in 3Q2023 was 6,592, down 9.7% y-o-y, the lowest 3Q figure in the last three years.

Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie believes the slower increase in prices indicate price resistance setting in and points to inflationary and affordability concerns. Mohan Sandrasegeran, Head of Research and Data Analytics at SRI observed that the November BTO, typically including balance flats, had been pushed to December, resulting in couples who need urgent housing to turn to the HDB resale market.

Lee Sze Teck, Senior Director of Data Analytics at Huttons Asia noticed a shift in demand to existing resale flats in mature estates due to changes in housing policy announced during the National Day Rally in August. This is because of the government’s new classification system that will be implemented in 2H2024 where flats will be categorized into Standard, Plus, and Prime flats, offering different subsidies and restrictions depending on the locational attributes.

Buyers are reportedly willing to pay more for the existing resale flats in mature estatesthat will not be subject to the same restrictions, leading to an increase in million-dollar resale flat transactions. Statistics from data.gov.sg show that in 3Q2023, there were an estimated 127 resale flats that were transacted for at least $1 million which is 21% more than the previous quarter. In August alone, 54 million-dollar flat transactions occurred and 50 of them took place in mature estates.

In addition, Tengah Plantation EC residents can also enjoy the recreational activities provided by Jurong Point, including a skate park and a water playground. With such diverse offerings, it’s no wonder this mall is popular among shoppers, young and old.

With the upcoming December BTO exercises offering around 6,000 flats located in estates such as Bukit Panjang, Jurong West, Woodlands, Bedok, Bishan, Bukit Merah and Queenstown, OrangeTee & Tie’s Sun predicts that prices may increase slower for the rest of the year with a full-year growth of 4% to 5.5%.