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December 06, 2023
HDB Average Resale Prices Inched Up Slightly In November 2023
Wong Siew Ying
Head of Research and Content at PropNex Realty
The HDB resale volume was relatively stable in November, dipping just 2.5% month-on-month to 2,137 units from 2,192 units in the previous month, according to the latest transaction data. When compared with the previous year, HDB resale transactions last month were up slightly by 0.3% year-on-year. Non-mature towns made up about 61% of the transactions in November, with Punggol leading sales during the month.
Looking at 2023, it is clear that the HDB resale market is showing signs of slowing growth, as the combined impact of price resistance among buyers, a larger Build-to-Order (BTO) supply, and the effects of the September 2022 cooling measures weigh on sales. In the first 11 months of 2023, an average of 2,161 resale flats were transacted per month – down from an average of 2,227 units in 2022 and 2,424 units in 2021, where demand was more buoyant.
PropNex expects the resale volume in December to trend close to the 2,000-unit level, in view of the year-end seasonal lull, as well as the HDB’s December BTO sales launch possibly drawing some prospective buyers from the resale market. Some 6,000 BTO flats will be offered for application, spanning seven towns – Bukit Panjang, Jurong West, Woodlands, Bedok, Bishan, Bukit Merah, and Queenstown.
Despite the more measured general buying sentiment, the average HDB resale prices inched up for the second straight month in November, rising by 0.9% MOM to more than $580,930 following the marginal 0.1% MOM increase in October. On a year-on-year basis, HDB resale prices were up by 4.1% YOY from November 2022 (see Chart 1).
Chart 1: HDB resale volume and average transacted price by month
Source: PropNex Research, Data.gov.sg
By flat type, the average of resale prices of larger flat types saw a slight decline from October to November. The overall average resale price of executive flats slipped by 1.9% MOM to $839,811, while that of 5-room resale flats dipped by 0.2% to $690,780 (see Table 1) – the slower growth and occasional dip in prices reflect price resistance in the market, where buyers are reluctant to pay more for resale flats as overall prices have run up substantially in recent years. Meanwhile, the average resale price for 4-room flats was flat in November, and that of 3-room flats rose by 1.6% MOM.
Table 1: Average transacted HDB resale flat prices by Flat Type in last six months
Jun-23 | Jul-23 | Aug-23 | Sep-23 | Oct-23 | Nov-23 | MOM % change | |
3-ROOM | $414,189 | $413,667 | $411,399 | $415,016 | $413,524 | $420,172 | 1.6% |
4-ROOM | $581,585 | $582,175 | $597,592 | $589,426 | $592,461 | $592,688 | 0.0% |
5-ROOM | $686,300 | $684,851 | $690,447 | $694,687 | $692,186 | $690,780 | -0.2% |
EXECUTIVE | $820,123 | $831,930 | $844,183 | $833,436 | $855,699 | $839,811 | -1.9% |
Source: PropNex Research, Data.gov.sg
Assessing the data by towns and flat types, it was found that the average resale prices of several flat types posted MOM declines in November – across both mature and non-mature estates. The segment that saw the steepest drop was executive flats in mature towns where the average resale price fell by 1.4% MOM to more than $911,000; this was followed by 5-room resale flats in mature estates where average price decreased by 1% MOM to about $800,000 (see Table 2). At the other end, 3-room resale flats in non-mature towns garnered the largest price increase, rising by 1.9% MOM to $409,439 in November.
Table 2: Average transacted HDB resale flat prices in Mature and Non-mature towns
Mature towns | Non-mature towns | |||||||
| Oct-23 | Nov-23 | % change MOM | Oct-23 | Nov-23 | % change MOM | ||
3 ROOM | $422,601 | $427,418 | 1.1% | $401,719 | $409,439 | 1.9% | ||
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