September 2023 HDB resale prices fell 0.6%, the first drop since February, while fewer units were sold.
Prices in non-mature estates fell 0.9% while mature estates declined 0.4%. Compared with September 2022, overall resale prices increased by 4.9%.
Other Key Points of September 2023 HDB Reale Market
- Resale volume fell by 19.7% where 1,985 units sold in September, down from 2,473 flats sold in the previous month. On a year-on-year basis, September’s resale volume was 23.3% lower than in the previous period.
- Anticipation of new BTO (Build-To-Order) launches, particularly in prime locations, has diverted interest from the HDB resale market.
- Prospective buyers may have been drawn to upcoming BTO launches in highly desirable areas such as Kallang/Whampoa and Queenstown.
- Mismatch in price expectations between sellers and buyers, leading to fewer transactions.
- Impact of the Hungry Ghost Festival as buyers deferred their purchase.
- High interest rates and elevated prices amid inflationary pressures may have also deterred some buyers from the resale market.
- The moderation of resale activity weighed on HDB resale prices, with the median price of 16 out of 26 estates falling from August to September.
- 42 resale flats were transacted for at least $1 million, down from 54 such transactions in August.
- September’s figure takes the number of million-dollar resale flats sold to 336 in the first nine months of this year, representing about 1.7% of total HDB resale volumes. Compared with the same nine-month period in 2022, million-dollar resale flat sales were up by about 21% from 277 units.
- Resale prices of three-room flats rose by 0.6% while four-room, five-room, and executive flats fell by 0.9%, 0.3%, and 2.1% respectively.
- Of the total number of resale units sold in September, 25.6% were three-room flats, 45.5% were four-room flats, 23.1% were five-room flats, 5.8% were executive flats.
- The most expensive flat sold was in Bishan where an executive unit changed hands at $1.45 million.
Outlook for HDB Resale Market
- Prices seem to be plateauing in the coming months after two years of strong price growth.
- More buyers may be diverted to the BTO market, especially those launched in attractive locations, as the government ramps up the supply of new BTO flats. This can be expected to further siphon off some demand from the HDB resale market.
- Sales activities may slow down as the year approaches the year-end holiday season.
New Private Property Launches
For those looking to upgrade to private properties, below are some of the upcoming property launches:
- J’Den, a highly-anticipated mixed-use development in Jurong Lake District
- Hillock Green, a 99-year leasehold condo at Lentor Central
- Lentoria, a 99-year leasehold condo near Lentor MRT station
- Hillhaven, a 99-year leasehold condo a short walk from Hillview MRT station
- Watten House, a luxurious freehold condo near Tan Kah Kee MRT in prime District 11