HDB Price growth for resales is slowing, even as the number of million-dollar transactions hit record highs
Interest rates have been higher than expected for longer, which has affected the affordability of homebuyers.
In the future, interest rates will continue to influence affordability. Many local banks offer HDB loans above 3%. Not everyone is eligible to borrow from HDB at 2.6. As more flats go up for sale, there may also be a shift in demand to the BTO.
HDB resale transactions rose by 2.9% in the 3Q2023 despite falling prices. They reached 6,592. It could be because more grants were given to first-time buyers of HDB resale apartments, and the delayed launch of the Build-To-Order sales in August, which diverted many Singaporeans into the resale sector.
HDB flat prices have been growing slower in the 3Q2023, indicating a price resistance. On the other hand, the number of million-dollar flats sold in the same period reached a new record. The slower growth in prices for the market as a whole and in some towns last quarter indicate that consumers are resisting further price increases.
Read more: The Continuum
Sengkang may be the next city to witness a million dollar flat deal, given that ten apartments have already been sold at a minimum of $900,000. Choa Chu Kang, Jurong West and Sembawang have each only recorded two million-dollar deals.
Geylang recorded the largest drop of 3.6% q-o-q, followed by the Central Area (down 3.4%), Bukit Batok (down 2%) and Sembawang (1.8%). Geylang recorded the largest drop of 3.6% from quarter-to-quarter, followed by Central Area (down 2.8%), Bukit Batok (2%) and Sembawang (1.8%). Bukit Timah, Serangoon and Central Area saw the largest q-o q price increases in 3Q2023. These were 38.1% and 10% respectively.
HDB resale price growth in 3Q2023, a 14. consecutive quarter of increases, was 1.2% qoq. The growth in 3Q2023, however, is less than the 1.5% increase in 2Q2023 or the 2.5% quarterly average growth in 2022. Prices have increased 3.8% year-to-date in the first nine month of this calendar year. This is lower than the 8% increase over the first three months of 2022.
In 3Q2023, 128 flats sold at least $1,000,000 set a new quarterly record. The previous record for a quarter was 111 units, set in 3Q2022. As 336 million dollar flats were already signed in the first nine month of this year, 2023 is likely to smash 2022’s record of 369 unit sales for the full year.