HDB Resale Volume Climbed For 3rd Straight Month In January

By Wong Siew Ying

The HDB resale market performed better than expected in January, with sales picking up despite the Chinese New Year falling in the month - a festive period which typically see slightly slower market activity.

According to transaction data, HDB resale flat transactions rose by 14.8% month-on-month to 2,571 units from 2,240 flats in December (see Chart 1). On a year-on-year basis, the resale volume was up by 5.3% when compared to January 2022. Non-mature towns accounted for 59% of the total resale volume in January. In particular, Woodlands, Yishun, and Punggol were the estates that led sales last month with 233, 213, and 201 transactions respectively.

Chart 1: HDB resale volume by month

Source: PropNex Research, data.gov.sg

January’s sales boost marks the third straight month of increase in the HDB resale volume after sales dipped for one month from September to October, following the introduction of fresh cooling measures in September.

This could be a case of buyers returning to the market after the year-end holidays and having reviewed the new cooling measures. Apart from buyers taking the measures in their stride, it may also be possible that some buyers prefer to pick up a resale flat before the Singapore Budget announcement (on February 14), on concerns that there may be further measures to slow the pace of price growth in the HDB resale market as public housing affordability has been in the spotlight of late. In addition, perhaps some buyers may be worried that any new measures could potentially affect their ability to buy a unit later on.

Table 1: Average transacted HDB resale flat prices in December 2022 and January 2023

Source: PropNex Research, data.gov.sg

*Mature towns are Ang Mo Kio, Bedok, Bishan, Bukit Merah, Bukit Timah, Central Area, Clementi, Geylang, Kallang Whampoa, Marine Parade, Pasir Ris, Queenstown, Serangoon, Tampines, and Toa Payoh
**Non-mature towns are: Bukit Batok, Bukit Panjang, Choa Chu Kang, Hougang, Jurong East, Jurong West, Punggol, Sembawang, Sengkang, Woodlands, and Yishun

Overall average HDB resale price island-wide inched up by 1.6% MOM from $549,568 in December to $558,356 in January, according to sales data. It seems like the limited resale flats available on the market is helping to prop up prices.

Tracking the average transacted prices of selected flat types from December to January, most of them saw a month-on-month increase in the average price (see Table 1). In mature towns, the average price of 3-room flats rose by 4.6% MOM to more than $418,200 in January, while that of 4-room and executive flats rose by 3.1% to about $654,500 and 2.3% to nearly $897,400 respectively. In contrast, the average price of 5-room flats dipped by1.2% MOM to about $766,600 in January.

In non-mature towns, average prices were fairly stable in January, with 5-room flats booking a faster pace of price growth at 1.9% MOM to nearly $630,400. This is followed by 3-room flats which posted a 1.0% MOM average price increase at around $395,000, while 4-room flat average price was relatively flat at $523,600 in January. Executive flats bucked the trend with the average resale price slipping by 0.5% to $756,300 from December to January.

PropNex expects HDB resale prices to hold up amid still healthy demand. Feedback from some of our salespersons indicate that some HDB owners – especially those who are expecting to get keys to their new home and are serious about selling their flat - are more open to adjusting their asking price in view of the high interest rates.

As per transaction data, about 40.9% of resale flats sold in January were priced at below $500,000, compared to 40.6% in December. Meanwhile, about 57.6% of the flats resold in January were transacted at between $500,000 and just under $1 million, compared to 58.2% in the previous month. The proportion of flats sold for at least $1 million accounted for about 1.6% of January’s transactions – up from 1.3% in the previous month (See Chart 2).

Chart 2: Proportion of HDB Resale Transactions by Price Range

Source: PropNex Research, Data.gov,sg

There were 40 HDB resale flats that were sold for at least $1 million in January (see Chart 3), rising from 28 flats in December, and is the highest number of such transactions since 45 units changed hands last September. Of the 40 units, three of the resale flats are in non-mature towns Yishun, Woodlands, and Punggol.

Majority of the 40 “million-dollar” resale flats are larger flat types of 5-room units, executive, and multi-generation flats. The others comprise seven 4-room flats and a sizable 3-room unit among the transactions. The 155-sqm (about 1,668 sq ft) 3-room terrace home in Jalan Bahagia in Kallang Whampoa – with a remaining lease of about 48 years - was sold for $1.068 million.

Chart 3: Number of “Million-dollar” HDB Resale Flats sold in January 2023

Source: PropNex Research, Data.gov,sg

Table 2: Top 10 “Million-Dollar” HDB resale flat sold in January 2023

Source: PropNex Research, Data.gov,sg

The most expensive resale flat sold in January 2023 was a 5-room unit at Pinnacle@Duxton in Cantonment Road in the Central Area. The 106-sqm flat which is located on a high floor (ranging between 40 and 42 storey) fetched $1.34 million (see Table 2).

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