Newsroom

Press Release

3 Apr 2023

HDB has just released the Q1 2023 real estate statistics.

https://www.hdb.gov.sg/about-us/news-and-publications/press-releases/03042023-Upcoming-Flat-Supply-and-Flash-Estimate-of-1st-Quarter-2023-Resale-Price-Index

Overview

The real estate buying frenzy may finally be over. Six months after the government implemented a broad package of property cooling measures to tighten lending limits for housing loans and moderate demand, the HDB resale market showed more signs of cooling as price gains weakened further and sales demand stabilized in Q1 2023.

Last quarter’s market performance indicates that the property curbs were effective in tempering market exuberance and slowing price growth.

Reasons for slower price growth

According to HDB flash estimates for Q1 2023, resale prices climbed marginally by 0.9 per cent quarter-on-quarter (q-o-q), marking a third consecutive quarterly price slowdown.

This is the smallest price appreciation since Q2 2020 when prices increased slightly by 0.3 per cent after the COVID-19 circuit-breaker lockdown. Nevertheless, prices are still at a fresh record in Q1 2023. Year-on-year, resale prices increased by 8.7 per cent in Q1 2023.

The price softening comes amid higher housing inventory. The housing shortage is easing as inventory builds up as more flats have been completed over the past months. Further, the government continued to launch BTO projects and released new flats for sale.

Prices may have also slowed as smaller flats constituted a higher proportion of sales last quarter, and small flats usually fetch lower prices (Table 1). According to data.gov.sg, the proportion of 4-room and smaller flats climbed from 69.7 per cent in Q4 2022 to 71.5 per cent in Q1 2023. The proportion of big flats dipped from 30.3 per cent to 28.5 per cent over the same period.

Outlook

Rising interest rates, inflationary pressures and high resale prices have crimped buyers’ purchasing power. As housing affordability takes centre stage, small resale flats will continue to find favour with buyers.

In addition, since more grants will be given to first-timers purchasing 4-room and smaller flats, demand for small flats will likely rise faster than for big flats.

Resale prices may continue to climb but at a slower pace of 5 to 8 per cent in 2023 compared to 10.4 per cent in 2022 and 12.7 per cent in 2021.

Press Release

by OrangeTee & Tie Pte Ltd.

OrangeTee's comments on HDB flash estimates for Q1 2023

HDB Quarterly Data