Average resale prices dropped 0.4% q-o-q in 4Q2023 in Toa Payoh town (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Last quarter, 12 HDB towns saw their average resale prices dip, the most significant being Bukit Timah, falling as much as 10.4% q-o-q. It was followed by the Central Area (8.6% drop) and Geylang (4.8% drop).
The three neighbourhoods where average resale prices dropped the least in 4Q2023 were Toa Payoh (-0.4%), Queenstown (-0.7%) and Marine Parade (-0.8%).
Meanwhile, average resale prices grew in 14 HDB towns last quarter, down from 16 in 3Q2023. Sembawang saw the highest quarterly price growth of 4.9%, followed by Ang Mo Kio (3.6%) and Tampines (2.9%). However, the quarterly price gains in 4Q2023 were generally less than 2%.
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According to Christine Sun, OrangeTee Group chief researcher and strategist in a report on Jan 17, four-room flats saw the highest price gains in 4Q2023, a mere 0.7%, followed by three- and five-room flats, with 0.6%. Executive flats rose marginally by 0.3%, while two-room flats were up by 0.1% (See Chart).
The dismal price growth in HDB resale prices was attributed to a delay in HDB's August Built-to-Order (BTO) exercise, which resulted in two BTO exercises and 12,000 new flats being launched in 4Q2023, which was double the average per quarter. Moreover, many of these new BTO projects are in prime or good locations with shorter construction times, notes OrangeTee. It diverted some buyers from the resale market to the BTO market.
Despite the increased competition from the BTO launches, OrangeTee doesn't expect a significant drop in HDB resale prices anytime soon. The reason is the sharp decline in the number of HDB flats reaching their minimum occupation period from 15,549 in 2023 to 11,952. The drop in supply of such flats could support resale prices in some towns.
Based on HDB resale transactions from data.gov.sg, the proportion of five-room flats sold dipped 1% from 22.9% in 3Q2023 to 21.9% in 4Q2023. Resales of executive flats rose marginally from 5.9% to 6% last quarter. The proportion of four-room flats transacted climbed about 2.8% to 2.9% to 43.8% to 44.4%.
The most popular towns in 4Q2023 were Sengkang (497 units), Punggol (487 units), Woodlands (462 units), Hougang (431 units) and Tampines (407 units).
Last quarter saw a record number of million-dollar HDB resale flats, with 134 units sold, compared to 28 in 3Q2023. For 2023, 470 million-dollar flats were sold, surpassing 2022's record of 369 units.
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Choa Chu Kang, Jurong West, Sembawang and Sengkang are the only four towns that have yet to see a million-dollar flat transaction. However, Sengkang may not need to wait long, with 12 units historically sold for at least $900,000.
Overall, HDB resale prices rose for the 15th consecutive quarter, with flash estimates in 4Q2023 showing a 1% price growth, lower than the 1.3% increase in the previous quarter.