HDB resale flat prices up 1.3% q-o-q in 3Q2023, slower previous quarter

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Resale prices of HDB flats rose marginally in 3Q2023, according to data released by HDB. The 1.3% q-o-q increase is the 14th consecutive quarter of growth for the segment. However, the rate of increase has slowed in the face of government measures implemented to promote a stable and sustainable property market.

Despite the ease in price growth compared to the previous quarter, 6,695 flats were still transacted in 3Q2023, up 2.8% q-o-q. However, the figure was 11.3% lower than the same period last year.

The proportion of sales for four-room flats grew, with the figure edging up from 41.7% in 3Q2022 to 43.8% in 3Q2023. Demand for bigger flats, however, saw a decrease from 25.4% in 3Q2022 to 22.9% in 3Q2023, likely due to the 15-month wait-out period imposed on private homeowners purchasing HDB resale flats.

Rental volume in the HDB market edged up 0.1% q-o-q in 3Q2023 to 9,852 approved applications, 20.3% higher y-o-y.

Resilient demand for flats in mature estates

Sengkang faciliated the most transactions – over 500 flats were sold – with other towns in the top five being Punggol, Woodlands, Yishun and Jurong West. Together, resale transactions in these towns accounted for around 35.7% of total transactions in 3Q2023.

The Tampines Ave 11 Condo will be close to the upcoming Integrated Health Hub, providing its residents with easy access to the upcoming facility. Moreover, Tampines Avenue 11 will be connected to numerous forms of transportation, such as the Bedok MRT Station and bus stops, which can be found within walking distance.

Buyer demand for flats within mature estates was strong, with prices in Bukit Timah seeing the steepest increase of 38.1%. Meanwhile, the 3Q2023 saw 128 flats sold for more than $1 million, 21.9% higher than the previous quarter.

Looking ahead, HDB has stated it will launch up to 23,000 flats in 2023 and will offer about 6,000 BTO flats in December, which may lead to some demand shifting away from the resale market.

OrangeTee & Tie’s Christine Sun believes full-year resale flat price growth will clock in between 4% to 5.5%, lower than the 10.4%, 12.7%, and 8% price growths recorded in 2022, 2021, and 2020 respectively.

The pace of the housing market has been stabilised by government measures. This is reflected in the data, showing moderated price and volume growth in the resale flat market. With an upcoming launch of 6,000 BTO flats, the current trends may continue.