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January 03, 2024

Softer HDB Resale Flat Volume Weighed On Prices In December 2023

Wong Siew Ying

Head of Research and Content

The HDB resale volume softened in December, affected by the seasonal lull which typically sees slower market activity amid the festive period and school holidays. Transaction data showed that 2,009 flats were resold in December – down by 6% from the 2,137 units sold in the previous month. When compared with December 2022, the resale volume was down by about 10% year-on-year. Non-mature towns made up about 62% of the transactions in December, with Sengkang, Woodlands, and Jurong West leading sales during the month.

Apart from the festive seasons, the HDB’s build-to-order (BTO) exercise in December could also have steered some buyers from the resale market to the BTO segment, especially those who do not have a pressing need for a new home. The HDB launched more than 6,000 new flats in seven towns - Bukit Panjang, Jurong West, Woodlands, Bedok, Bishan, Bukit Merah, and Queenstown - for application in December.

In view of the weaker sales, the average HDB resale prices fell marginally by 0.4% MOM to $578,587 in December, but were up by 5.2% YOY from December 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 price of executive flats saw the steepest drop, posting a 2.1% MOM decline in December. Notably, this is the second consecutive month of price decline for executive flats, possibly indicating stronger price resistance from buyers of larger flats. Meanwhile, the 5-room flats’ average resale price rose by 1.1% MOM to $698,665 in December, and that of 4-room resale flats climbed by 0.9% MOM to $597,908 (See Table 1).

 Table 1: Average transacted HDB resale flat prices by Flat Type in last six months

Jul-23

Aug-23

Sep-23

Oct-23

Nov-23

Dec-23

MOM % change

3-ROOM

$413,667

$411,399

$415,016

$413,524

$420,172

$412,656

-1.8%

4-ROOM

$582,175

$597,690

$589,500

$592,461

$592,688

$597,908

0.9%

5-ROOM

$684,851

$690,447

$694,687

$692,186

$690,780

$698,665

1.1%

EXECUTIVE

$831,930

$844,183

$833,436

$855,699

$839,811

$822,098

-2.1%

Source: PropNex Research, Data.gov.sg

Evaluating the sales data by towns and flat types, it was found that 3-room flats in both mature and non-mature towns witnessed a fall in the average resale price from November to December, with that of mature town posting a larger decline of 2.4% MOM (see Table 2). Meanwhile, 4-room, 5-room and executive flats in mature estates saw their average resale prices rise by between 1.0% and 2.6% MOM in December.

In particular, the average resale price of 5-room flats in mature towns achieved the fastest pace of growth during the month. This could be due to the sustained demand for resale 5-room flats, especially in the city fringe and near the city centre as the HDB typically does not offer new 5-room BTO flats in such locations.   

Over in the non-mature towns, executive flats booked a 2.0% MOM decline in the average resale price, while that of 3-room flats saw a marginal 0.7% MOM dip. Meanwhile, 4-room and 5-room flats garnered a slight MOM increase in their average resale price in December.

Table 2: Average transacted HDB resale flat prices in Mature and Non-mature towns

Mature towns

Non-mature towns

 

Nov-23

Dec-23

% change MOM

Nov-23

Dec-23

% change MOM

3 ROOM

$427,418

$417,148

-2.4%

$409,439

$406,446

-0.7%

4 ROOM

$680,457

$687,550

1.0%

$547,533

$551,515

0.7%

5 ROOM

$800,776

$821,628

2.6%

$643,735

$646,952

0.5%

EXECUTIVE

$911,036

$928,361

1.9%

$801,167

$785,030

-2.0%

Source: PropNex Research, Data.gov.sg

In December 2023, mature towns made up the top 3 lists of estates in PropNex’s ranking of average transacted resale prices on a per square foot basis ($PSF) by flat types (see Table 3). The highest average PSF price for 4-room flats in December was $982 psf in Central Area – supported by two flats that were resold for more than $1 million in Cantonment Road. Specifically, one of the 4-room flats set a new record high unit price for HDB resale flat transactions at $1,409 psf. Meanwhile, the Central Area and Bukit Timah achieved the highest average resale unit price for 5-room flats and executive flats in December at $1,031 psf and $859 psf, respectively.

Table 3: Top 3 towns by Average $PSF transacted price by flat type in December 2023 (and corresponding price in previous month)

Source: PropNex Research, data.gov.sg

Based on resale transaction data, about 34.2% of resale flats sold in December were priced at below $500,000, compared to 33.6% in the previous month. Meanwhile, about 63.4% of the flats resold were priced at between $500,000 and just under $1 mil – down from 64.3% in September. The proportion of resale flats sold for at least $1 million made up 2.4% of December’s sales – rising slightly from 2.1% in the previous month (See Chart 2).

Chart 2: Proportion of HDB Resale Transactions by Price Range

Source: PropNex Research, Data.gov.sg

The number of HDB flats resold for at least $1 million dip by about 7% MOM to 48 units in December from 45 units transacted in the previous month (see Chart 3). This takes the total number of such flats resold to an all-time high of 470 units in 2023 – up by 27% from the record 369 units in 2022.

Chart 3: Number of “Million-dollar” HDB Resale Flats sold By Month

Source: PropNex Research, Data.gov.sg

Of the 48 units of million-dollar resale flats transacted, three units are located in non-mature towns (Woodlands 2 units, Jurong East 1 unit). The remaining flats are in Ang Mo Kio, Queenstown, Kallang Whampoa, Bukit Merah, Toa Payoh, Clementi, Central Area, Bukit Timah, Bishan, Serangoon, and Geylang. By flat type, 21 of the million-dollar resale flats are 5-room units, followed by 17 units of 4-room flats, and 10 units of executive flats.

The most expensive HDB resale flat sold in December was a 5-room flat at Pinnacle @ Duxton in Cantonment Road (see Table 4). The 105 sq m (1,130 sq ft) flat which is located between the 28th and 30th floor fetched $1.42 million. This is followed by a 4-room flat – also in Cantonment Road – which was resold for $1.411 million or $1,409 psf, marking the highest ever transacted PSF price point for HDB resale flats.

PropNex expects that the sales volume for million-dollar resale flats could remain elevated in 2024, propped up by several groups of buyers: a) those seeking larger flats in more central locations; 2) former private home owners who have served their 15-month wait-out period; and 3) buyers looking for ‘restriction-lite flats’ in appealing locations.

From 2H 2024, the HDB will classify new flats by Standard, Plus, and Prime categories – with Plus and Prime flats being subjected to more stringent resale and rental conditions, as well as a 10-year minimum occupation period. Some prospective buyers may not be keen on the tighter rules, and could opt to buy resale flats in attractive locations instead – as existing resale flats are not affected by the new classification framework.

Table 4: Top 10 HDB resale flats transacted in November 2023 by Transacted Price

Town

Type

Street

Storey range

Floor area SQM

Lease start date

Price

PSF ($)

CENTRAL AREA

5 ROOM

CANTONMENT RD

28 TO 30

105

2011

$1,420,000

$1,256

CENTRAL AREA

4 ROOM

CANTONMENT RD

46 TO 48

93

2011

$1,410,888

$1,409

BUKIT MERAH

5 ROOM

BOON TIONG RD

19 TO 21

112

2016

$1,400,000

$1,161

BUKIT TIMAH

EXECUTIVE

TOH YI DR

10 TO 12

146

1988

$1,350,000

$859

CENTRAL AREA

5 ROOM

CANTONMENT RD

10 TO 12

107

2011

$1,320,000

$1,146

BUKIT MERAH

5 ROOM

HENDERSON RD

04 TO 06

113

2019

$1,288,000

$1,059

BUKIT MERAH

5 ROOM

BOON TIONG RD

13 TO 15

115

2005

$1,250,000

$1,010

TOA PAYOH

5 ROOM

LOR 1A TOA PAYOH

16 TO 18

113

2012

$1,228,000

$1,010

TOA PAYOH

5 ROOM

LOR 1A TOA PAYOH

13 TO 15

113

2012

$1,215,000

$999

ANG MO KIO

5 ROOM

ANG MO KIO ST 52

25 TO 27

117

2011

$1,200,000

$953

 Source: PropNex Research, Data.gov.sg

 

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