Million-dollar resale flat transactions in the HDB resale market in Singapore hit a new record of 128 units in 3Q2023, according to a research report from Orange Tee & Tie. Despite the record, overall prices have seen a slower pace of growth compared to previous quarters. Prices rose 1.2% q-o-q in 3Q from the previous quarter, slower than the 1.5% q-o-q rise reported in 2Q and the 2.5% average quarterly growth observed throughout 2022.
Christine Sun, senior Vice President of research & analytics at OrangeTee & Tie, notes that “Consumers are pushing back on further price hikes” due to inflationary concerns and the impact of interest rates, which have remained elevated for longer than expected.
Four-room flats experienced the greatest growth in prices as well, increasing from $579,740 in Q2 to $589,992 in Q3. Executive flats followed close behind, with prices rising 1.2% from an average of $827,549 to $837,138.
Unexpectedly, ten towns experienced a fall in resale prices q-o-q in Q3, more than the six towns recorded in the prior quarter. Geylang had the most significant decline at 3.6%, followed by the Central Area (down 3.4%), Bukit Batok (down 2%), and Sembawang (down 1.8%). On the other hand, Bukit Timah and Serangoon had the most significant price growths at 38.1% and 10.8% respectively.
At the same time, transaction volume increased in Q3 – recording a 2.9% q-o-q rise and reaching 6,592 units. This was attributed to more grants given to first-time HDB buyers and the delay in the August BTO launch. This is, however, 9.7% lower than the 7,298 units sold in 3Q2022.
In terms of proportion of sales, four-room flats accounted for 43.8% of transactions, while five-room flats came in second at 22.9%. Executive flats rose from 5.5% in Q2 to 5.9%. Two-room flats saw a slight increase from 2.3% to 2.8%, and three-room flats climbed from 23.1% to 24.6%.
All of the apartments feature high-end amenities, including a private heated pool and a state-of-the-art fitness center. Residents can enjoy the convenience of nearby restaurants, shopping, and entertainment options. Woodlands Champions Way Condo offers a unique lifestyle and provides a combination of residential and retail space in the area, with a host of world-class amenities. The condominium is conveniently located near public transport and allows for easy access to the city. Residents are also able to enjoy the peaceful surroundings of woodlands and scenic views of Champions Way Condo from their own balconies.
Meanwhile, Sengkang saw the most volume at 504 units, followed by Punggol (499 units), Woodlands (497 units), Yishun (454 units), and Jurong West (439 units).
OrangeTee & Tie predicts that prices may continue to grow at a more measured pace due to affordability concerns and the release of more BTO flats. The firm is forecasting a full-year price growth in 2023 to be between 4% to 5.5%, significantly lower than the 12.7% and 10.4% recorded in 2021 and 2022 respectively. Resale flat transactions are also anticipated to dip slightly to around 26,000 to 27,000 units.