HDB Resale Prices Up by 2.3% in Q1 Even After Slow Growth in the Market

Resale prices at the Housing Board  (HDB) have climbed up for the almost eighth consecutive quarter, even after the signs that prices of residential properties may settle in. Reports reveal that flat resale prices increased by 2.3% during the first quarter of this year in comparison to the last quarter of the previous year. Moreover, this is the lowest price growth recorded since 2020’s third quarter, when the property prices increased by 1.5%. When compared with the stats from one year ago, the Housing Board flat resale prices have increased by almost 12%.

The senior vice president of Orange Tee and Tie, Ms. Christine Sun, recently said that last quarter reported a slower rise in the price as compared to the expectations shown by forecasts. Out of the ongoing million-dollar transactions, a higher number of flats crossed the $1.3 million mark this year, and it is expected that they may move beyond $1.4 million in the near future.

Ms. Sun also added that lower and middle-income residents in Singapore that are responsible for bulk HDB flat sales may get greatly affected by the rising cost of living. As inflation gets worse, most people start looking for smaller flats or properties located in non-mature areas. They are usually available at a low price. Experts estimate that resale prices for flats may continue to increase, but it may happen at a slower pace; the expectations are 5 to 8% for this year.

Note that HDB flat resale prices increased by 12.7% in the year 2021, which is recorded as the highest annual growth from the year 2010. Furthermore, the head of the research and consultancy department at ERA realty network, Mr. Nicholas Mak, stated that the HDB resale market is expected to stay buoyant due to the limited supply of new flats.

He also added that approximately 35000 HDB flats might reach the minimum occupation period by the end of this year, and they could receive a great price in the resale market. Furthermore, the newer flats may grab higher prices in comparison to the existing older flats in the same area while contributing to a considerable rise in the resale prices for HDB flats. Mr. Mak also predicted that HDB resale flat prices might rise by almost 3 to 7% during 2022.

It is observed that the cooling measures implemented in the month of December recently caused a considerable impact on the flat prices. However, the ease in Covid-19 measures further allowed construction companies to get more workforce to complete the pending work on new flats so that supply-related crises can be solved soon.
Mr. Mak also stated that the large number of flats achieving MOP state might also drive property prices while ensuring higher sale prices for the newer homes. HDB is expected to release the final price index for the resale properties during the first quarter, along with the relevant public housing data in the month of April this year.


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