Understanding HDB Resale Prices: A Simple Guide for 2023

Buy Sell Rent SG // October 12 // 0 Comments

Hey there! Have you ever wondered about the prices of HDB flats and how they change over time? Well, you’re in luck! We’re here to break down some recent data for you in a way that’s easy to understand. Let’s dive in!

What’s Happening with HDB Resale Prices?

In the third part of 2023 (that’s July to September), the prices of HDB flats that people were selling (we call these “resale” flats) didn’t grow as fast as they did before. In fact, in 10 towns, the prices even went down a bit!

To give you some numbers:

  • In this third quarter, prices went up by 1.2%. But in the second quarter, they went up by 1.5%. And last year, on average, they grew by 2.5% every three months.
  • From the start of the year until now, prices have increased by 3.8%. But last year, they went up by 8% in the same time. And the year before that? They went up by 9.1%!

Why Did This Happen?

Christine Sun, a top expert from OrangeTee & Tie, said that there are a few reasons:

  1. Things are getting more expensive everywhere (that’s called “inflation”), so people are careful about how much they spend.
  2. The cost of borrowing money has increased, so it’s harder for people to buy homes.

Some Interesting Facts:

  • Out of 26 towns, 10 had their resale prices drop a bit. This is more than the 6 towns that saw a drop in the second quarter.
  • The town of Geylang saw the biggest drop in prices, with a decrease of 3.6%. Central Area was next with a 3.4% drop, then Bukit Batok with a 2% drop.
  • Four-room flats are getting more popular! Their average price increased by 1.8%, from S$579,740 to S$589,992.
  • Bigger flats, like executive ones, saw their prices increase by 1.2%, and smaller two-room flats saw a 1% increase.
  • More people are selling their flats. In the third quarter, 6,592 units were sold, more than the 6,409 units sold in the second quarter.

Why Are People Buying More Flats?

Christine Sun said that:

  1. First-time buyers got more financial help.
  2. There was a delay in the release of new flats in August.

But, not all flat types were equally popular. Four-room flats and five-room flats saw a slight drop in sales. On the other hand, executive flats and smaller units like two-room and three-room flats became more popular.

Fun Fact: Expensive Flats!

Did you know? In the third quarter, 128 flats were sold for at least a million dollars! That’s more than the 111 sold during the same time last year. And guess what? Sengkang might be the next town to have a flat sold for a million dollars!

What’s Next for HDB Resale Prices?

OrangeTee & Tie think that by the end of the year, between 26,000 and 27,000 flats will be sold. They also believe prices will continue to grow, but maybe only by 4% to 5.5%.

FAQ

What are HDB flats?

HDB flats are public housing in Singapore. They were built by the Housing and Development Board (HDB).

What does “resale” mean?

Resale flats are HDB flats that have been bought before and are being sold again.

Why did HDB resale prices grow slower this quarter?

Prices grew slower because of rising costs everywhere and higher borrowing costs.

Which town saw the biggest drop in resale prices?

Geylang had the biggest drop, with a decrease of 3.6%.

Are more expensive flats being sold now?

Yes! More flats are being sold for at least a million dollars compared to last year.

About the Author Buy Sell Rent SG

We are a group of savvy property investors.