New Reporter
12-06-23, 12:48
HDB resale price growth slows in May, while volumes rise: SRX, 99.co
Jun 08, 2023
RESALE prices of Housing and Development Board (HDB) flats continued to rise in May at a moderate pace of 0.3 per cent compared with 1.1 per cent in April 2023, according to flash estimates from SRX and 99.co.
Noting that May’s figures mark the third month of “very marginal price increase”, ERA Realty Network’s key executive officer Eugene Lim said this is an indication that HDB resale prices are stabilising.
He attributed this to sellers becoming more “realistic”, while homebuyers are now “more rational as they are now less pressured amid the increased flat supply”.
Year on year, the overall price increase was 7.7 per cent.
Resale prices rose month on month for mature and non-mature estates at 0.7 per cent and 0.3 per cent respectively. This was lower than the prices registered for the month of April, where mature estates were up 1 per cent and non-mature estates rose 0.8 per cent.
Compared with a year earlier, mature estate prices rose 7.3 per cent and non-mature estate prices were up 8.1 per cent. Most of the units transacted last month came from non-mature estates. These units made up 62.2 per cent of the resale volumes in May, while the remainder were from mature estates.
According to Mogul.sg chief research officer Nicholas Mak, the “more stable” resale transaction volume and slower price appreciation were due to the effects of the cooling measures introduced in September 2022 and the increased supply of new Build-To-Order (BTO) flats this year.
In Mak’s view, the new BTO projects will take “some wind out of the sail” for the resale market.
He therefore expects resale transactions to dip in the coming months, leading to an estimated 3 per cent to 5 per cent dip in 2023 full-year volumes from 2022’s levels.
By flat type, the flash estimates showed prices of three-room flats increased by 0.8 per cent, four-room flats recorded a 0.7 per cent increase, and prices of executive flats edged up 0.6 per cent. Meanwhile, prices of five-room flats fell 0.6 per cent from April.
This is in contrast with the same period last year, when all room types registered an increase in prices.
The total number of flats that changed hands in May was also up 3.2 per cent or 2,259 transactions. Out of these, 34 flats or 1.5 per cent of the total resale volume were transacted above the million-dollar mark, representing a decline from 37 of such units sold in April 2023.
The highest transacted price for May was a five-room unit at The Peak at Toa Payoh, which was sold for S$1.37 million.
Huttons Asia’s chief executive Mark Yip observed “reluctance” among homebuyers to pay S$1.1 million and up for an HDB flat, based on how transaction volumes have dropped for a second straight month.
This could be because buyers may rationalise paying a higher price for an HDB flat and have opted to go for four-room units instead, he said.
Sorting resale transactions by room types, four-room HDB flat volumes grew the most at 46.2 per cent. This is much higher than the 24.5 per cent from three-room flats, 24.4 per cent from five-room flats and 4.8 per cent from executive units.
Resale volumes were 4.8 per cent higher compared with the year-ago period. This was a reversal from the 4.3 per cent decline registered in April.
One reason for the possible increase could be due to the slower price growth and increase in HDB housing grants for eligible buyers, commented Wong Siew Ying, PropNex’s head of research and content.
Another factor contributing to this could be flat owners selling their HDB flats due to the completion of their new private residential units or executive condominiums, added Wong.
Luqman Hakim, chief data and analytics officer at 99.co, commented: “With prices of private resale homes and rents on an upward trend, HDB resale homes continue to be a more affordable and viable option, especially for those looking to move in quickly.”
https://www.businesstimes.com.sg/property/hdb-resale-price-growth-slows-may-while-volumes-rise-srx-99co
Jun 08, 2023
RESALE prices of Housing and Development Board (HDB) flats continued to rise in May at a moderate pace of 0.3 per cent compared with 1.1 per cent in April 2023, according to flash estimates from SRX and 99.co.
Noting that May’s figures mark the third month of “very marginal price increase”, ERA Realty Network’s key executive officer Eugene Lim said this is an indication that HDB resale prices are stabilising.
He attributed this to sellers becoming more “realistic”, while homebuyers are now “more rational as they are now less pressured amid the increased flat supply”.
Year on year, the overall price increase was 7.7 per cent.
Resale prices rose month on month for mature and non-mature estates at 0.7 per cent and 0.3 per cent respectively. This was lower than the prices registered for the month of April, where mature estates were up 1 per cent and non-mature estates rose 0.8 per cent.
Compared with a year earlier, mature estate prices rose 7.3 per cent and non-mature estate prices were up 8.1 per cent. Most of the units transacted last month came from non-mature estates. These units made up 62.2 per cent of the resale volumes in May, while the remainder were from mature estates.
According to Mogul.sg chief research officer Nicholas Mak, the “more stable” resale transaction volume and slower price appreciation were due to the effects of the cooling measures introduced in September 2022 and the increased supply of new Build-To-Order (BTO) flats this year.
In Mak’s view, the new BTO projects will take “some wind out of the sail” for the resale market.
He therefore expects resale transactions to dip in the coming months, leading to an estimated 3 per cent to 5 per cent dip in 2023 full-year volumes from 2022’s levels.
By flat type, the flash estimates showed prices of three-room flats increased by 0.8 per cent, four-room flats recorded a 0.7 per cent increase, and prices of executive flats edged up 0.6 per cent. Meanwhile, prices of five-room flats fell 0.6 per cent from April.
This is in contrast with the same period last year, when all room types registered an increase in prices.
The total number of flats that changed hands in May was also up 3.2 per cent or 2,259 transactions. Out of these, 34 flats or 1.5 per cent of the total resale volume were transacted above the million-dollar mark, representing a decline from 37 of such units sold in April 2023.
The highest transacted price for May was a five-room unit at The Peak at Toa Payoh, which was sold for S$1.37 million.
Huttons Asia’s chief executive Mark Yip observed “reluctance” among homebuyers to pay S$1.1 million and up for an HDB flat, based on how transaction volumes have dropped for a second straight month.
This could be because buyers may rationalise paying a higher price for an HDB flat and have opted to go for four-room units instead, he said.
Sorting resale transactions by room types, four-room HDB flat volumes grew the most at 46.2 per cent. This is much higher than the 24.5 per cent from three-room flats, 24.4 per cent from five-room flats and 4.8 per cent from executive units.
Resale volumes were 4.8 per cent higher compared with the year-ago period. This was a reversal from the 4.3 per cent decline registered in April.
One reason for the possible increase could be due to the slower price growth and increase in HDB housing grants for eligible buyers, commented Wong Siew Ying, PropNex’s head of research and content.
Another factor contributing to this could be flat owners selling their HDB flats due to the completion of their new private residential units or executive condominiums, added Wong.
Luqman Hakim, chief data and analytics officer at 99.co, commented: “With prices of private resale homes and rents on an upward trend, HDB resale homes continue to be a more affordable and viable option, especially for those looking to move in quickly.”
https://www.businesstimes.com.sg/property/hdb-resale-price-growth-slows-may-while-volumes-rise-srx-99co