HDB Resale Prices In Q1 2023 Grow 0.9%, Smallest Increase In 10 Quarters (1)

HDB Resale Prices In Q1 2023 Grew 0.9%, Smallest Increase In 10 Quarters

HDB resale prices in Q1 2023 grew at a slower pace of 0.9% compared to a 2.3% increase in the previous quarter.

This is the smallest quarterly increase in the last 10 quarters or 2.5 years. This indicates that price resistance is setting in.

The steep rise in HDB resale flats has come under increasing scrutiny as prices have shot up 31.9% in the last 12 quarters, faster than the 27.9% increase in private residential property prices over the same period.

Meanwhile, you may be interested in the report “Singapore Q1 2023 Private Home Prices Rise 3.2%: URA Flash Estimates“.


30 September Property Cooling Measures Bite

The slower pace of price growth in Q1 2023 indicates that the latest round of property cooling measures imposed on 30 September 2022 has been effective in dampening market exuberance, portending an end to the buying frenzy.

One of the measures is requiring private property downgraders to wait out 15 months after selling their private homes before they can buy an HDB resale flat. The move was aimed at moderating demand from this group of buyers, who are deemed to have a bigger budget and prefer larger resale flats.

Meanwhile, property agents have observed more buyers exercising restraint in their re-offer prices after their initial offers were rejected by HDB flat sellers, while buyers who are ineligible for an HDB home loan may also be deterred by the steep rise in bank housing loan rates, which currently stand around 4%.

Another factor hampering the rise in HDB resale flats is the increase in the supply of Build-To-Order (BTO) flats. The HDB has announced that it is prepared to launch up to 100,000 flats from 2021 to 2025.

Nevertheless, property analysts expect HDB resale prices may continue to climb, albeit at a slower pace of 5% to 8% in 2023 as compared with 10.4% in 2022 and 12.7% in 2021.

Meanwhile, the HDB resale volume in Q1 2023 is estimated to be about 6,880 units, about 1% higher than the 6,810 units compared with the same quarter in 2022, according to flash estimates.

HDB will launch about 5,400 Build-To-Order flats in towns such as Bedok, Kallang/Whampoa, Serangoon, and Tengah in May and between 5,200 and 6,200 flats in towns such as Bukit Merah, Choa Chu Kang, Kallang/Whampoa, Queenstown, and Tengah in August.


Property Investment Options for Existing HDB Owners

For existing HDB flat owners, the steep rise in prices of HDB resale flats witnessed since 2019 will likely come to an end amid the deluge of BTO flat supply. Hence, it may be prudent to re-evaluate how to maximise the value of your existing asset, especially for older flats, where their values will be affected by lease decay.

Perhaps, this may be an opportune time to cash in and upgrade to private property. If you are not sure about your investment options, let’s have a chat.


Upcoming Private Property Launches

With a slew of new properties being launched across the island in the coming months, developers are likely to be realistic with their pricing. Below are some of the upcoming new launches in the next few months:

Core Central Region (CCR)


Rest of Central Region (RCR)


Outside Central Region (OCR)


Posted in Property News.

Hi, I'm Lance Kuan, an Associate Marketing Manager at Huttons Asia Pte Ltd, one of the largest property agencies in Singapore.

With almost 30 years of experience in banking, investment and market analysis, I now find immense pleasure in helping others in property investment and asset progression.

My blog - Sg Home Investment - offers essential property reviews, research and guides to help buyers make an informed investment decision. Please feel free to WhatsApp Me if you have any queries about the real estate market in Singapore.