New Reporter
05-10-23, 14:57
HDB resale prices dip in September, breaking 6-month streak: SRX, 99.co
Oct 05, 2023
HOUSING and Development Board (HDB) flat resale prices booked a monthly decline for the first time since February.
On Thursday (Oct 5), flash data from real estate portal SRX and property agency 99.co showed that September’s resale prices and volumes both fell from the previous month.
This was likely impacted by competition from Build-To-Order (BTO) launches in October and December, said 99.co’s chief data and analytics officer Luqman Hakim, who expects the lower demand and price pressures to persist in the coming months until end-2023.
Concerns of high interest and inflation have shifted some prospective buyers’ demand away from the resale market amid increasing prices, he added.
After six months of continuous growth, overall HDB resale prices posted their first month-on-month decrease of 0.6 per cent. Prices for non-mature estates dropped 0.9 per cent month on month in September, and 0.4 per cent for mature estates.
“Following two years of strong price growth and recent cooling measures, it appears that HDB resale prices are plateauing as price resistance sets in,” said PropNex’s head of research and content Wong Siew Ying.
Three-room units were the only room type that had a price increase of 0.6 per cent. Prices of four-roomers fell by 0.9 per cent, five-roomers by 0.3 per cent and executive flats by 2.1 per cent.
ERA’s key executive officer Eugene Lim considered the changes in median prices across all flat types “marginal”, with the overall market median price falling from S$560,000 to S$555,000.
“Despite the slight decrease, September 2023 is still the month with the second-highest price after August 2023,” he said.
September’s prices were higher year on year by 4.9 per cent, with prices for all room types increasing over the same comparative period. Mature estate prices grew 5.1 per cent and non-mature prices rose 4.8 per cent from the previous year.
In terms of room types, four-room flats had the highest price increase on a year-on-year basis of 5.8 per cent, followed by five-roomers at 5 per cent and three-roomers at 4.8 per cent. Prices for executive flats in September were 3.4 per cent higher on year.
There were 1,985 HDB resale flats transacted in September, representing a 19.7 per cent decrease from the previous month, and down 23.3 per cent on year.
About 59.9 per cent of resale volumes for the month came from non-mature estates, with the remaining 40.1 per cent from mature estates.
By room type, 45.5 per cent of September’s volumes came from four-room units, followed by three-roomers (25.6 per cent), five-roomers (23.1 per cent) and executive flats (5.8 per cent).
Industry experts have largely attributed the fall in September’s volumes to effects of the recent lunar seventh month, and the likelihood of potential resale buyers holding back on their purchases while waiting for more BTO housing options.
“Around 13,000 new flats will be put up for sale from two BTO sales launches in October and December. Many BTO flats are well-located, in proximity to an MRT station or surrounded by ample amenities. As a result, we expect more buyers to be diverted from the secondary market. Moreover, the year-end will usually experience a seasonal slow in sales activities as many buyers and sellers will be on holiday,” said Christine Sun, senior vice-president of research and analytics for OrangeTee & Tie.
“While we still expect the resale volume to be relatively steady, the ample supply of new BTO flats in attractive locations and more flats with shorter waiting time could possibly siphon some buyers from the HDB resale market,” added PropNex’s Wong.
Likewise, ERA’s Lim said HDB’s October BTO sales are likely to draw some buyers away from the resale market in the last quarter of the year, as it includes popular locations such as Kallang Whampoa.
“But with the stricter penalties, buyers with specific home requirements may turn to the resale market instead,” he said.
The top-transacted price for a resale flat in September was S$1.45 million for an executive apartment at Bishan Street 24. Within non-mature estates, a five-room flat at Punggol Field sold for the highest price at S$1.15 million.
There were 42 HDB resale flats transacted for at least S$1 million in September, down from 54 of such units sold the previous month.
Million-dollar flats comprised 2.1 per cent of total resale volumes for the month, mostly in Toa Payoh, where seven of such units were sold. This was followed by Bukit Merah and Bishan, where six of such units changed hands in September.
Huttons chief executive Mark Yip said it is “highly likely” that the number of million-dollar flats will exceed 400 and account for around 1.6 per cent of total transactions for 2023, considering an expected surge in BTO and private home supply in the coming months.
Yip expects HDB resale prices to post a moderate growth of around 5 per cent for all of 2023, with full-year resale transaction volumes coming in at around 24,000 to 26,000.
https://www.businesstimes.com.sg/property/hdb-resale-prices-dip-september-breaking-6-month-streak-srx-99co
Oct 05, 2023
HOUSING and Development Board (HDB) flat resale prices booked a monthly decline for the first time since February.
On Thursday (Oct 5), flash data from real estate portal SRX and property agency 99.co showed that September’s resale prices and volumes both fell from the previous month.
This was likely impacted by competition from Build-To-Order (BTO) launches in October and December, said 99.co’s chief data and analytics officer Luqman Hakim, who expects the lower demand and price pressures to persist in the coming months until end-2023.
Concerns of high interest and inflation have shifted some prospective buyers’ demand away from the resale market amid increasing prices, he added.
After six months of continuous growth, overall HDB resale prices posted their first month-on-month decrease of 0.6 per cent. Prices for non-mature estates dropped 0.9 per cent month on month in September, and 0.4 per cent for mature estates.
“Following two years of strong price growth and recent cooling measures, it appears that HDB resale prices are plateauing as price resistance sets in,” said PropNex’s head of research and content Wong Siew Ying.
Three-room units were the only room type that had a price increase of 0.6 per cent. Prices of four-roomers fell by 0.9 per cent, five-roomers by 0.3 per cent and executive flats by 2.1 per cent.
ERA’s key executive officer Eugene Lim considered the changes in median prices across all flat types “marginal”, with the overall market median price falling from S$560,000 to S$555,000.
“Despite the slight decrease, September 2023 is still the month with the second-highest price after August 2023,” he said.
September’s prices were higher year on year by 4.9 per cent, with prices for all room types increasing over the same comparative period. Mature estate prices grew 5.1 per cent and non-mature prices rose 4.8 per cent from the previous year.
In terms of room types, four-room flats had the highest price increase on a year-on-year basis of 5.8 per cent, followed by five-roomers at 5 per cent and three-roomers at 4.8 per cent. Prices for executive flats in September were 3.4 per cent higher on year.
There were 1,985 HDB resale flats transacted in September, representing a 19.7 per cent decrease from the previous month, and down 23.3 per cent on year.
About 59.9 per cent of resale volumes for the month came from non-mature estates, with the remaining 40.1 per cent from mature estates.
By room type, 45.5 per cent of September’s volumes came from four-room units, followed by three-roomers (25.6 per cent), five-roomers (23.1 per cent) and executive flats (5.8 per cent).
Industry experts have largely attributed the fall in September’s volumes to effects of the recent lunar seventh month, and the likelihood of potential resale buyers holding back on their purchases while waiting for more BTO housing options.
“Around 13,000 new flats will be put up for sale from two BTO sales launches in October and December. Many BTO flats are well-located, in proximity to an MRT station or surrounded by ample amenities. As a result, we expect more buyers to be diverted from the secondary market. Moreover, the year-end will usually experience a seasonal slow in sales activities as many buyers and sellers will be on holiday,” said Christine Sun, senior vice-president of research and analytics for OrangeTee & Tie.
“While we still expect the resale volume to be relatively steady, the ample supply of new BTO flats in attractive locations and more flats with shorter waiting time could possibly siphon some buyers from the HDB resale market,” added PropNex’s Wong.
Likewise, ERA’s Lim said HDB’s October BTO sales are likely to draw some buyers away from the resale market in the last quarter of the year, as it includes popular locations such as Kallang Whampoa.
“But with the stricter penalties, buyers with specific home requirements may turn to the resale market instead,” he said.
The top-transacted price for a resale flat in September was S$1.45 million for an executive apartment at Bishan Street 24. Within non-mature estates, a five-room flat at Punggol Field sold for the highest price at S$1.15 million.
There were 42 HDB resale flats transacted for at least S$1 million in September, down from 54 of such units sold the previous month.
Million-dollar flats comprised 2.1 per cent of total resale volumes for the month, mostly in Toa Payoh, where seven of such units were sold. This was followed by Bukit Merah and Bishan, where six of such units changed hands in September.
Huttons chief executive Mark Yip said it is “highly likely” that the number of million-dollar flats will exceed 400 and account for around 1.6 per cent of total transactions for 2023, considering an expected surge in BTO and private home supply in the coming months.
Yip expects HDB resale prices to post a moderate growth of around 5 per cent for all of 2023, with full-year resale transaction volumes coming in at around 24,000 to 26,000.
https://www.businesstimes.com.sg/property/hdb-resale-prices-dip-september-breaking-6-month-streak-srx-99co