HDB resale volumes slide 22% in February but prices continue to climb: SRX, 99.co

Decline in volume due to slower market activity over Chinese New Year, viewing restrictions: analysts

Mar 10, 2022

RESALE volumes of Housing Board (HDB) flats slid 22 per cent month on month to an estimated 1,904 transactions in February 2022, according to flash estimates released by SRX Property and 99.co on Thursday (Mar 10).

This marks the first time volumes fell below the 2,000-unit mark since May 2021 - which saw 1,966 flats changing hands.

Property analysts have attributed the decline in volume to slower market activity over the Chinese New Year festive period, as well as viewing restrictions as Covid-19 cases continue to rise in Singapore.

HDB's February Build-to-Order (BTO) launch may have also pulled some of the resale demand over, analysts from Huttons Asia and PropNex noted.

"The attractive BTO pricing and popular locations, particularly in Geylang and Kallang Whampoa, could also have encouraged some families to apply for the new flats instead of buying a resale flat - especially for those who are not in a hurry to move in," said PropNex head of research and content Wong Siew Ying.

Year on year, resale volumes are down 12.1 per cent. Christine Sun, OrangeTee & Tie's senior vice-president of research and analytics, noted that February 2021's sales were much higher, even when compared with previous years.

"Last year's strong demand may not be sustained this year especially since prices of flats have been climbing," she added.

Despite the drop in volume, resale prices continued an upward trend in February 2022, rising 0.6 per cent month on month. Prices in mature estate flats rose by 0.5 per cent, while non-mature estate prices increased by 0.7 per cent.

Compared with January 2022, most room types saw price climbs, with 5-room flats leading gains with a 1.4 per cent increase, followed by 4-room and executive flats which both rose by 0.5 per cent. However, 3-room flats saw a 0.1 per cent decline in resale prices.

Year on year, all room types saw price increases, with 3-room and 4-room flats rising by 12.6 per cent each, 5-room flats gaining 12.2 per cent and executive flats increasing by 13.7 per cent.

About 42.8 per cent of HDB resale transactions were for 4-room flats, 25.2 per cent for 5-room flats, 23.1 per cent for 3-room flats and 7.1 per cent for executive flats. Two-room and multi-generation flats comprised the remaining resale volume.

Non-mature estate flats made up 56 per cent of total resale volumes in February, while mature estate flats took up the remaining.

The highest transacted price for a resale flat was S$1,308,000 for a 5-room unit at Pinnacle @ Duxton. In non-mature estates, the most expensive flat resold was S$1,038,000 for an executive apartment unit at Yishun Avenue 4.

The number of million-dollar flats resold increased to 29 in February from 27 in January. Seven of these flats came from the central area, followed by Queenstown with 4 units.

Looking forward, Huttons Asia chief executive Mark Yip said the tight labour situation in the construction industry may soon be resolved with the streamlining of measures from Mar 13.

As more new workers would be able to come into the Republic to accelerate the completion of homes, the supply of homes may increase and thus alleviate the supply-demand imbalance in the market, he added.