HDB prices mark 13th straight quarterly increase, rising 1.5% in 2Q2023

The HDB resale price index marked a 1.5% q-o-q increase in 2Q2023, marking the 13th consecutive quarter of rising prices across the public housing market. The overall prices for executive flats rose by 2.3% q-o-q from $800,000 in 1Q2023 to $$818,000 in 2Q2023, while prices of five-room flats climbed 1.9% from $638,000 to $650,000.

Diving into the numbers, 18 out of 26 towns witnessed an increase in median prices. Geylang registered the highest quarterly price growth of 19.2%, followed by Ang Mo Kio at 8.4%, the Central Area at 6.8% and Bukit Panjang at 6.1%. Popular HDB towns that saw the highest resale transaction volumes last quarter were Punggol, Woodlands, Sengkang, Yishun and Bukit Batok.

Transaction volumes dip
Overall resale transaction volumes fell 6.7% q-o-q in 2Q2023, from 6,979 resale flats in 1Q2023 to 6,514 resale flats last quarter. This is the lowest volume since 2Q2020. According to Christine Sun, senior vice-president of research & analytics at OrangeTee&Tie, more generous housing grants likely fuelled demand last quarter.

Million-dollar flats
Million-dollar flats continue to stand out as 105 of these transactions were recorded in 2Q2023 which represent about 1.6% of the total secondary market. A new price record was also set last quarter when a jumbo HDB flat in Tiong Bahru sold for $1.5 million. However, buyers are increasingly “reluctant’ to pay $1.1 million or more for an HDB flat.

Upcoming BTO supply
HDB also published an update on the upcoming BTO supply for 2H2023. Close to 10,000 BTO flats have been launched in the first half of this year, with another 13,000 flats ready to be launched in the second half of the year.

Living in a Singapore Condohas its clear benefits. Large rooms, luxurious furnishings, private parking, and great view of the city are but some of the perks that condo owners enjoy. Add to that, facilities like swimming pools, gyms and playgrounds provide welcome opportunities for relaxation and entertainment.

Given the stigma of condo prices being inflated, coupled with the fact that investing in a foreign country might not be ideal for everyone, Singaporeans who want a slice of the condo life should certainly do their own research.

Outlook
Eugene Lim, key executive officer of ERA Realty, points out that the relatively slower pace of price increase in 1Q2023, compared to 2022, is indicative of “a shift towards a more sustainable growth trajectory for HDB resale prices”. The government’s plan to inject 13,000 BTO flats into the market in 2H2023 will go a long way in helping to stabilise the HDB flat market. However, HDB resale prices are likely to remain resilient as buyers face higher replacement costs and would want to sell their HDB flats at higher resale prices.