Navigating the Complex Landscape: HDB Resale Prices in 4Q2023

Navigating the Complex Landscape: HDB Resale Prices in 4Q2023

The final quarter of 2023 brought notable fluctuations in HDB resale prices across Singapore. Twelve towns witnessed a decline in average resale prices, with Bukit Timah leading the way with a substantial 10.4% drop, followed by the Central Area and Geylang.

HDB resale prices dipped as much as 10.4% q-o-q for some areas in 4Q2023

Contrasting Trends in Resale Prices:

  • Declines: Bukit Timah (-10.4%), Central Area (-8.6%), Geylang (-4.8%)
  • Minimal Changes: Toa Payoh (-0.4%), Queenstown (-0.7%), Marine Parade (-0.8%)
  • Growth Leaders: Tampines (4.9%), Ang Mo Kio (3.6%), Tampines (2.9%)

Flat-Specific Insights:

  • Room Type Gains: Four-room flats showed the highest growth at 0.7%, followed by three- and five-room flats at 0.6%. Executive flats rose marginally by 0.3%, while two-room flats increased by 0.1%.
  • Supply Dynamics: An influx of new flats due to the August Built-to-Order (BTO) exercise impacted resale prices. The BTO launches diverted buyers, creating increased competition.

Market Dynamics and Predictions:

  • Supply Decline: A sharp drop in the number of flats reaching their minimum occupation period may support resale prices in select towns.
  • Transaction Shifts: The proportion of five-room flats sold declined, while four-room flats' transactions increased. Sengkang, Punggol, and Woodlands emerged as the most popular towns.
  • Million-Dollar Flats: A record 134 million-dollar HDB resale flats were sold in 4Q2023, reflecting a growing trend.

Interpretation: The dip in HDB resale prices, particularly in prime locations, is attributed to increased competition from a surge in BTO launches. The shift in buyer preferences and a decrease in the supply of flats reaching their minimum occupation period are key factors influencing market dynamics. Despite the challenges, the market remains robust, marked by a record number of million-dollar transactions.

Call to Action: Stay informed about the dynamic HDB resale market. Whether you're looking to buy, sell, or invest, understanding these trends is crucial. Reach out for personalized insights and updates tailored to your property goals.

In Summary:

  • Divergent trends in resale prices across Singapore.
  • Market impacted by increased BTO launches and changing buyer preferences.
  • Record number of million-dollar HDB resale transactions in 2023.

For personalized insights and updates on the HDB resale market, reach out today.

Source: EdgeProp

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