Monthly HDB Resale Volume Picked Up In July 2023

The HDB resale market activity improved considerably from June to July. Based on resale transactions, 2,055 HDB flats were resold in July, up by 10.7% from 1,856 units that changed hands in the previous month. When compared to July 2022, the resale volume fell by 13% from the 2,361 resale flats transacted a year ago.

Several factors could have brought buyers back to the market, including a return of transaction activity after the school holidays, as well as moderating HDB resale flat prices. For instance, the overall average price of HDB resale flats inched up by 0.5% MOM to $577,057 in July 2023 (Chart 1). This is slightly slower than the 0.7% MOM growth in June. On a year-on-year basis, the average price was up by 3.3% from July 2022 – this pace of growth is also slower than the 6.3% YOY increase achieved at the start of the year in January 2023.

Meanwhile, by flat type, the overall average transacted prices for 4-room, and executive flats rose slightly by 0.1% and 1.4% MOM respectively in July. In contrast, the average price of 3-room and 5-room resale flats posted a 0.1% and 0.2% MOM decline from June to July (see Table 1).

Analysing the data by towns and flat types, it is observed that the average resale price of most flat types posted MOM declines in mature towns, with 3-room flats booking the largest 1.2% MOM drop among the flat types (see Table 2). This was followed by the 1% MOM decline in average price of 5-room resale flats, and executive flats which witnessed a marginal 0.8% fall in average resale price from June to July. The average price of 4-room resale flats was fairly flat in July at about $672,618.

Meanwhile, the non-mature estates saw a stronger average price increase for the 3-room and executive flat types, with a 2.6% and 1.8% MOM growth in July. The declines were also less pronounced, with the 4-room and 5-room resale flats reflecting a fall of 0.03% and 0.4% MOM in average price from June to July.

In July 2023, mature towns dominated the top 3 lists of estates in PropNex’s ranking of average transacted prices on a per square foot basis ($PSF) by flat types (see Table 3). The highest average PSF price for 4-room flats came in at $962 psf in Central Area, while Clementi and Bukit Timah posted the highest average unit resale price for 5-room flats and executive flats in July 2023 at $743 psf and $779 psf, respectively. The towns that were placed top all had resale transactions of HDB flats priced at least $1 million, which could have propped up prices. For instance, Bukit Timah had two executive flat resale deals, both of which are “million-dollar” resale transactions, and three out of the five 5-room flat transactions in Clementi are “million-dollar” resale deals.

Based on resale transaction data, about 35% of resale flats sold in July were priced at below $500,000, on par with that of in June. Meanwhile, about 63.4% of the flats resold in July were transacted at between $500,000 and just under $1 mil – also relatively in line with the 63.1% in the previous month. The proportion of resale flats sold for at least $1 million accounted for about 1.6% of June’s transactions, dipping from 1.8% in June 2023 (See Chart 2).

There were 32 resale flats sold for at least $1 million in July – down by about 6% from 34 units in June. In the first seven months of 2023, the market saw 240 “million-dollar” HDB resale flats (see Chart 3) changing hands, reflecting a 20.6% increase from the first corresponding seven months of 2022 where 199 such flats were resold.

Of the 32 “million-dollar” flats resold in July, three transactions are in the non-mature estates namely an executive flat in each of Hougang, Jurong East, and Woodlands. The remaining transactions are in 11 mature towns – Bishan, Bukit Merah, Bukit Timah, Central Area, Clementi, Geylang, Kallang/Whampoa, Pasir Ris, Queenstown, Serangoon, and Toa Payoh. By flat type, 12 of the “million-dollar” resale flats sold in July are executive flats, another dozen comprises 5-room units, and eight are 4-room resale flats.

The priciest HDB resale flat transacted in July was a DBSS (design, build, and sell scheme) 5-room flat at The Peak @ Toa Payoh in Lorong 1A Toa Payoh, which fetched $1.38 million. The flat spans 114 sqm (1,227 sq ft) and is located between the 34th and 36th storey. The second most expensive unit sold in the month is also in the same project, being a 117 sqm (1,259 sq ft) 5-room flat on the storey ranging from 37 to 39 floors; it was sold for $1.328 million (see Table 3).

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