The Housing and Development Board (HDB) resale market in Singapore has been a focal point for real estate professionals, investors, and homeowners alike.
The HDB resale market has shown steady stability, with a forecast of modest price growth of 3-5% price growth. According to Business Times, this rate is on a par with the 4 to 5.5 percent that the HDB resale market is tipped to show for 2023, but much slower than the 10.4 percent increase in 2022 and 12.7 percent spurt in 2021.
Market Overview
The HDB resale market plays a crucial role in Singapore’s real estate sector, providing affordable housing options for the majority of the population. With an increasing demand for HDB resale flats, the market has proven to be resilient in the face of economic uncertainties and global challenges.
This year, the ramping up of new flat supply, inflation-wary buyers’ resistance to higher prices, and the lingering impact from cooling measures have damped the resale market, said Wong Siew Ying, PropNex’s head of research and content.
The HDB resale market plays a crucial role in Singapore’s real estate sector, providing affordable housing options for the majority of the population. With an increasing demand for HDB resale flats, the market has proven to be resilient in the face of economic uncertainties and global challenges.
Wong added that with the significant increase in HDB resale transaction volume is expected to hit 26,500 in 2023. BTO flat supply, elevated resale prices, and effects of the September 2021 cooling measures, it could be some time before the market repeats the feat of the robust sales seen in 2021, where more than 31,000 flats were resold.
Changes in Policy
Some policy changes took effect during the year 2023 including the doubling in grants given to buyers of resale flats; a new HDB Flat Eligibility (HFE) letter required before purchase; penalties for non-selection of BTO flats; and a revised framework for BTO flats designed to
keep a lid on public housing prices – factors that pulled the resale market in different directions.
It was noted by Lee Sze Teck, Huttons Asia’s senior director for data analytics, that despite the increased competition from the BTO market, a resale price correction is not expected for 2024. Supply is expected to shrink. The estimated total number of new flats hitting their five-year MOP in 2023 at 15,748 — half of the 31,325 units in 2022. She expects the supply of MOP flats to shrink further in 2024 to 13,093 units.
PropNex noted that the 13,093 HDB flats completing their MOP next year would be in towns such as Sembawang, Sengkang, Tampines, and Toa Payoh, accounting for 61 percent of the total units.
PropNex’s estimated the number of HDB flats transacted for at least S$1 million came to 422 units as of Nov 30, 14 percent higher than the record 369 deals done in 2022.
Huttons’ Lee added: “There was more interest in newer flats in mature estates which had no restrictions on resale. Buyers viewed such flats without restrictions as potentially having better capital appreciation in the future and are willing to buy them now.
