Press Release
02 Oct 2023
HDB has just released the Q3 2023 real estate statistics.
https://www.hdb.gov.sg/about-us/news-and-publications/press-releases/02102023-Flash-Estimate-RPI
Overview
HDB resale prices grew at a slower pace last quarter as some price resistance could have set in amid inflationary and affordability concerns. Home buyers’ affordability has been hit by rate hikes as interest rates have stayed higher and longer than anticipated.
Prices
According to flash estimates released by HDB, resale prices edged up for the 14th consecutive quarter by 1.2 per cent in the third quarter of 2023, compared with 1.5 per cent in the second quarter. Last quarter’s gains were below the 2.5 per cent average in 2022 and 3.1 per cent average in 2021.
Year-to-date, prices increased by 3.8 per cent in the first nine months of this year, less than the increases seen over the same periods in 2022 at 8 per cent and 2021 at 9.1 per cent.
Q3’s price growth was driven mainly by 4-room flats whose average prices rose the most by 1.8 per cent from S$579,740 in Q2 2023 to S$590,454 in Q3 2023, based on HDB data from data.gov.sg downloaded today. This was followed by executive flats at 1.3 per cent from S$827,549 to S$$838,120 and 2-room flats at 1.0 per cent from S$321,255 to S$324,458 over the same period.
Volume
Owing to more grants given to first-timers purchasing HDB resale flats and a delay in August’s BTO sales launch, more Singaporeans purchased HDB resale flats last quarter. Resale volume is up 2.9 per cent to 6,592 units in Q3 2023.
Outlook
As supply continues to be ramped up with more BTO flats launched for sale and with affordability remaining a key concern among buyers, prices may continue to rise moderately for the rest of the year.
The resale market may not see a repeat of the rapid price increases witnessed during the pandemic, where HDB resale prices rose by 12.7 per cent in 2021 and 10.4 per cent in 2022. Prices may climb slower for the rest of the year, with the full-year growth at around 4 to 5.5 per cent.