HDB resale buyers have started to give up on the waiting game, it seems, as HDB resale sales volume has bounced back. As resale flat prices continue to climb, many are trying to take advantage of the lowest home prices they can get in a while, along with the favourable HDB loan interest rates currently.
With this overview in mind, let’s take a dive into the stats and insights of the HDB resale market for the start of 2023.
Resale flat prices are still increasing
It has been the 31st straight month of increase for HDB resale prices, with a quickened pace month on month from December to January. Resale flat prices in January 2023 grew by 1.4%, compared to 0.2% in December 2022. Year on year, the increase was 8.7% from January 2022 to January 2023.
Although 4-room flats showed the most price jump, by 2.3%, the climbing prices can be seen occurring across the board for all flat types, including mature and non-mature estates. In fact, January 2023 experienced the highest monthly price growth for 4-room flats since January 2022.
Million-dollar transactions continue to rise
The million-dollar flat market has yet to slow its growth as well, not barring the momentary slowdown caused by property cooling measures in September last year. January 2023 saw 40 HDB resale flats selling for $1 million or more, an increase from 28 units in December. In total, 1.6% of total resale flats were million-dollar deals.
Understandably, most of the flats going at this price range are larger flats, with 45% of January’s million-dollar flats being 5-room units. These are mainly flats in the Central, Ang Mo Kio, Kallang, Bishan, Toa Payoh, Clementi, and Queenstown areas.
Taking the crown as the most expensive resale flat for the month is a unit at The Pinnacle@Duxton, a 5-room flat that transacted at $1.34 million. But more interestingly, there was also a three-room unit sold just above $1 million – a terraced house in Kallang/Whampoa that went for $1.068 million.
Recovering sales volume in the resale market
Besides the climbing HDB resale prices, sales volume in the resale market has also been rising for the third consecutive month, signalling a recovery from last year’s cooling measures. January 2023 saw 2,575 HDB units changing hands, an increase of 14.9% from December’s 2,242 units. The year-on-year increase for January 2023 is 5.4%.
Property analysts attribute the growing sales volume to buyers who had given up on the waiting game. Seeing that HDB resale prices were not falling, they chose instead to grab hold of current opportunities before prices continued to rise further. The uncertainty and waiting brought about by the cooling measures had created a pent-up demand, which was released in Q1 of 2023.
There is also an added sense of urgency brought about by undulating interest rates and HDB’s comparatively favourable rate of 2.6%. Potential buyers will want to strike before the quarterly review of HDB’s rates. In the near future, we may also see more HDB would-be upgraders turning to the HDB resale market instead, deterred from the private home market by rising prices.
While HDB resale prices have yet to reach their peak, rising prices can send confusing signals to homeowners who are considering moving homes. You might be tempted to price your home high due to the market, but there is also the risk of out-pricing your potential buyers and delaying your sale.
If you don’t want to, you don’t have to scratch your head over pricing issues, marketing your home, and even scouting for prospects. For that, a qualified HDB property agent in Singapore can help you simplify the home selling and buying process.
Not many housing agents in Singapore can match up to the experience and know-how of Joel Choy, a multi-award-winning realtor at PropNex. Tap into his wealth of expertise and reduce your housing headaches when you choose to consult him for your HDB sale! To get started, simply drop him a free, no-obligation strategy call to discuss your situation with Joel.