SINGAPORE: The just-released Housing Development Board (HDB) resale statistics for Q1 2023 show that despite high demand, the growth of prices of resale flats is moderating, which is likely due to an increase in BTO launches and easing construction delays after pandemic restrictions.
However, the head of PropertyGuru Singapore says there is little urgency for HDB resale flat sellers to lower their prices.
This quarter’s increase of less than two per cent, 171.9 points in Q4 2022 to 173.6 points in Q1 2023, is the smallest quarter-on-quarter increase observed in the last ten quarters, although it should still be noted that there have been 12 consecutive quarters of the price increase.
Several factors have contributed to the rise of HDB resale flat prices, including HDB estates with more homes fulfilling their Minimum Occupation Period (MOP) and a continued preference for larger flats.
Additionally, more four-room flats have exceeded the $1 million price tag.
PropertyGuru said in a commentary that it still expects HDB resale prices to grow, albeit moderately, provided that no economic shocks occur.
Over 16,000 “flats are expected to fulfil their MOP this year, with the bulk of these flats located in Bukit Batok, Yishun, Buangkok, and Sembawang. These HDB estates are likely to see greater resale flat price growth this year,” the company said.
PropertyGuru added that it expects the demand for HDB resale flats to remain driven by families who urgently need homes and do not want to wait out lengthy BTO completion times.
“Despite challenges such as still-high interest rates and borrowing costs, uncertain economic outlook and tighter property curbs, this was the twelfth consecutive quarter of price growth.
In Q1 2023, sellers have continued to raise their asking prices as there is little urgency for them to lower prices.
Meanwhile, the new major condo launches are setting new benchmark prices. While demand has diminished, there are buyers who have the liquidity to purchase private homes,” said Dr Tan Tee Khoon, the Country Manager for Singapore PropertyGuru. /TISG