The HDB resale market in Singapore maintained its upward trajectory in the last quarter of 2023, though with a moderated growth of 1%, signaling a shift in the property landscape. This follows a series of cooling measures implemented in September 2022, tempering the robust price growth observed in previous years.
-
Slower Growth Trend:
- Q4 2023 witnessed a 1% increase in HDB resale prices, a deceleration from 1.3% in Q3.
- The full-year increase of 4.8% contrasts sharply with the double-digit growth seen in 2021 and 2022.
-
Factors Influencing Resale Dynamics:
- Cooling measures introduced in September 2022 have recalibrated market dynamics.
- The impact of the measures is evident in the slower quarterly growth, indicative of a more sustainable trend.
- Resale prices show muted growth across flat types, with four-room flats leading at a 0.7% rise.
-
Million-Dollar Flats and Shifting Demand:
- A surge in flats transacted for at least S$1 million during Q4, highlighting an evolving buyer profile.
- Demand for these "million-dollar" flats is driven by first-time buyers and upgraders seeking spacious homes.
-
Supply Dynamics and Resale Volume:
- Resale volume decreased by 2.3% in Q4, attributed to the rescheduling of BTO flat launches.
- Overall supply of resale flats increased, driven by owners moving into new homes and putting their flats up for sale.
-
Implications of Policy Changes:
- The reclassification of BTO flats from the second half of 2024 may influence buyer behavior, with some opting for resale flats before the changes take effect.
- Resale flats in mature estates exhibit resilient demand, while non-mature estates experience increased supply.
-
Market Projections and Call to Action:
- ERA projects resale transactions to reach between 26,000 and 27,000 units by end-2024.
- OrangeTee & Tie estimates a potential 3% to 5% rise in resale prices in 2024, reflecting continued market stability.
- Stay informed and seize opportunities in this evolving market. Reach out to our real estate experts for personalized insights.
Source: Business Times