The HDB resale transaction volume picked up from April to May, rising by 3.2% MOM to 2,256 flats in May. When compared to May 2022, sales were up by 4.7% on a year-on year-basis, according to the transaction data. It is possible that the slowing HDB resale price growth momentum could have brought more buyers into the market.
One reason that could have contributed to the uptick in sales is the completion of new private residential units and executive condo (EC) units in Q1 2023, which see some flat owners selling their HDB flat as they receive keys to their newly-completed homes. HDB upgraders are required to sell their existing HDB flats within 6 months from the issuance of the temporary occupation permit.
The Urban Redevelopment Authority said that 2,965 private residential units and 820 EC units were completed in Q1 2023. It is likely that a good portion of the buyers of these new homes could be HDB upgraders, who will be looking to sell their flat on the resale market within Q2 and Q3 2023 – helping to bump up the HDB resale stock slightly. Some of the projects that were completed in Q1 2023 included Piermont Grand EC, Avenue South Residence, Riviere, Mayfair Gardens, and Kent Ridge Hill Residences.
HDB Resale Transactions
Despite the slight increase in sales, transaction data showed that the overall average price of HDB resale flats dipped from April to May, falling by 0.6% MOM to about $569,900 (see Chart 1), but was up by 4.4% YOY, when compared to May 2022.
Meanwhile, by flat type, the overall average transacted prices for 3-room, 4-room, and executive flat rose by 0.6%, 1.1% and 0.7% MOM respectively. However, the average price of 5-room HDB resale flats posted a 1.4% MOM decline in May (see Table 1).
Evaluating the transactions by flat types and towns, the data showed that the average resale price of 5-room flats in both mature and non-mature estates moderated from April to May, declining by 1.3% MOM (to over $788,400) and 0.8% MOM (to about $639,400) respectively (see Table 2). This could indicate some price resistance among buyers in paying ever-higher prices for such flats. Meanwhile, executive flats in non-mature towns booked the highest increase in average price in May, with a 2.1% MOM growth. The average prices of 3-room and 4-room resale flats, meanwhile rose slightly across both mature and non-mature towns – possibly supported by more buying interest due to the higher government grants for smaller flat types offered to eligible buyers.
In May 2023, mature towns dominated the top 3 lists of estates with the highest average transacted price on a per square foot basis ($PSF) by flat types (see Table 3). Four-room HDB resale flats in the Central Area achieved the highest average unit price in May at $866 psf – substantially lower than the $1,052 psf garnered in the previous month, as April’s figure was boosted by four “million-dollar” resale transactions at the Pinnacle @ Duxton, including a $1.4 million deal for a 4-room unit.
Looking at HDB resale transaction data, about 36% of resale flats sold in May were priced at below $500,000, compared to 37.4% in April. Meanwhile, about 62.5% of the flats resold in May were transacted at between $500,000 and just under $1 mil – rising from the 60.9% in the previous month. The proportion of resale flats sold for at least $1 million accounted for about 1.5% of May’s transactions, dipping from 1.7% in April 2023 (See Chart 2).
There were 34 resale flats sold for at least $1 million in May – down by about 8% from 37 units in April. All in, there were 174 such flats resold in the first five months of 2023, higher than the 135 units transacted in the corresponding period in 2022 (see Chart 3).
Of the 34 “million-dollar” flats, all are located in mature towns, except for 4 HDB resale flats which are in non-mature estates Woodlands (2 units), Bukit Batok, and Yishun. Mature town Kallang Whampoa topped the list in May, with 8 “million-dollar” HDB resale flats, comprising two executive flats, a 5-room flat, and five 4-room units). By flat type, there were 10 4-room flats, 12 each of 5-room and executive flats that were resold for at least $1 million in May.
A DBSS (design, build and sell scheme) 5-room flat in Lorong 1A Toa Payoh fetched the top price of $1.37 million in May. The unit spans 114 sq m (1,227 sq ft) and is located within the floor range of 34 to 36 floor (see Table 3).
Read more: 8 Reasons Why Singapore Is a Safe Haven for Real Estate Investment, April Resale Volume In The Suburbs – Hougang Project Booked Gains Of More Than $720,000 On Average, 5 Essential Skills to Learn When Living Alone for the First Time: Singapore Edition, What is the HDB Flat Eligibility (HFE) letter?, The Continuum