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, continuing the rising trend that has occurred across the public housing market for the last 13 consecutive quarters. This marks a slight moderation in resale price growth compared to the average quarterly growth of 2.5% throughout 2022. Prices for executive flats stood at $818,000 in 2Q2023, a 2.3% q-o-q increase from $800,000 in 1Q2023, while prices of five-room flats rose 1.9% from $638,000 to $650,000.

The URA’s goal is to make Woodlands Park a vibrant community center that will provide a safe and inviting environment for families and visitors alike.

The URA also has plans to build the Woodlands Champions Way Condo complex. This new condo complex will be the first of its kind in the Woodlands area. The complex will feature four towers of high rise living, with modern amenities and luxurious features. Residents will enjoy access to fitness centers, restaurants, and swimming pools. The complex will also be surrounded by lush landscaping and several green spaces. This new development project will provide an opportunity for more people to live and work in the Woodlands.

Median prices in 18 out of 26 towns increased over this period, with Geylang demonstrating 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, accounting for 37.4% of total HDB resales.

Despite the rise in prices, overall resale transaction volumes fell 6.7% q-o-q from 6,979 resale flats in 1Q2023 to 6,514 resale flats last quarter. This is the lowest volume since 2Q2020, during the circuit breaker at the start of the pandemic.

More generous housing grants likely fuelled demand last quarter, with the doubling of grants given to resale flat buyers possibly responsible for the quickening in HDB resale prices growth. It is possible that the moderation in price growth so far this year stems from government efforts to tamper the market through a ramp-up in BTO supply, lowering of loan-to-value ratio to 80%, and a 15-month wait-out period for private property owners downgrading to an HDB flat.

Million-dollar flats remain a distinct feature of the public housing market with 105 of these transactions recorded last quarter, representing 1.6% of total secondary market transactions. A new price record was set when a 1,894 sq ft jumbo HDB flat in Tiong Bahru sold for $1.5 million, translating to $7592 psf.

Buyers are increasingly reluctant to pay more than $1.1 million for an HDB flat, with more million-dollar flat transactions falling into the range of $1 million to $1.1 million. Five-room, million-dollar deals remain the most common at 43.7% and 42.9% of flats hitting the million-dollar mark in 1Q 2023 and 2Q 2023, respectively. There was a notable increase in the proportion of 4-room resale HDB flats hitting the million-dollar mark, rising from 20.4% in 1Q 2023 to 30.5% in 2Q 2023.

HDB also published an update on the upcoming BTO supply for 2H2023, with close to 10,000 BTO flats launched in the first half of this year, and another 13,000 flats ready to be launched in the second half of the year. In December, a total of 6,300 flats will be offered in towns such as Bedok, Bishan, Bukit Merah, Bukit Panjang, Jurong West, Queenstown, and Woodlands.

Some resale demand may be diverted towards these upcoming BTO projects, with some first-timers enticed to acquire more flats in mature estates like Kallang/ Whampoa, Queenstown, Bedok, and Bukit Merah. However, stricter penalties on non-selection of flats by applicants from September 2023 BTO may divert some demand to the resale market.

The injection of 13,000 BTO flats into the market in 2H2023 will help to stabilise the HDB flat market, though prices are likely to remain resilient due to the increased replacement costs of HDB upgraders moving into new suburban condos and EC launches.

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