The following BTO sales event, which will take place next month, will offer 4,400 flats along the Whampoa River

Based on the most recent quarterly HDB price data that were released on Jan 27 prices for flat resales were up 2.3% q-o-q in 4Q2022. The total price rise for 2022 at 10.4% compared to the 12.7% price gain recorded in 2021.

It also marks the fourth consecutive year of increases in HDB prices for resales from the beginning of 2019. The this quarter’s price increase was the slowest pace of growth since 3Q2020.

Kassia condo for sale will feature 280 residential units on a 150,840 sq ft plot in various configurations ranging from one to four bedrooms.

The total amount of HDB Resale transactions decreased to 6,597 transactions in the 4th quarter of 2022 lower than the 7,546 transactions recorded in the prior quarter. The volume of transactions during 4Q2022 were 16.9% lower than in 2021.

The slower pace is due to the slower pace of market activity because of the downturn in activity in the final quarter season, and also the new property cooling measures, which were announced in September of last year according to Wong Siew Ying, PropNex Realty’s director of content and research.

The same sentiment is shared by Lee Sze Teck, senior director of research at Huttons Asia, who adds that price increases in the HDB resale market has slowed slightly since 2H2022 due to price resistance from buyers and the increase in interest rates.

“The rising costs of borrowing have a negative impact on buyers’ budgets as buyers too are shuddering at the thought of paying cash more than the value given that economic conditions are becoming uncertain in the 2H2022 period.” Lee says. Lee.

In addition, the government stepped into the market with market intervention measures in order to slow the rise of HDB flat prices in the last year, in response to worries that the cost of the five and four-room flats were beginning to be beyond the reach of most buyers.

“The rise in the amount of HDB flats that were resold for more than $1 million by 2022, with 337 units, compared to 259 flats the year before and also played a role in creating concerns about the affordability of housing,” adds Wong.

The most recent property cooling measures announced on September 30 are aimed at private property buyers of large-sized HDB flats for resales. “The effect is felt instantly in the real world as a lot of private property owners were unable to obtain an exemption from HDB and have to end their purchases,” says Lee.

Recent resales data show that flats worth a million dollars which changed hands decreased from 111 in the 3Q2022 period to 93 in the 4Q2022. In total, the flats that sold for at least one Million dollars or greater, accounted of 1.3% of the total sales in FY2022.

Supply boosting

HDB also released more details regarding the build-to-order (BTO) flats in 2023. The following BTO sales exercise scheduled for next month will provide 4,400 flats and include the development of new properties within Jurong West, Kallang Whampoa, Queenstown and Tengah. In the following month, the June 2023 BTO sales exercise will provide between 3,800 and 4,800 flats across Bedok, Kallang and Whampoa, Queenstown, Serangoon and Tengah. The statutory board has stated that it is planning to offer 23,000 BTO flats in the coming year. It will continue to track the housing market and adjust if needed.

“The Government’s message is they are determined to expand availability of BTO flats in order to meet the housing requirements of Singaporeans. In the context of the text it is also a sign that the government will do everything it can to curb the price of HDB resales. HDB price for resales.” claims Nicholas Mak, head of research and consulting for ERA Realty.

The most important factor that will encourage buyers to go back to BTO flats is the government’s ability to shorten the time to complete the upcoming BTO developments, according to Mak.

The research conducted by Huttons Asia shows that the number of two-room or more expansive flats that had reached their 5-year MOP (minimum occupancy time) for 2022 was 30199. However, it is expected to decrease by more than fifty% this year to 15,364 flats. This will “drastically decrease the amount of “newer” flats available for resales,” says Lee.

This is also a sign this means that HDB renting market likely to remain favorable to landlords due to the low number of rentable flats that are available Mak. Mak.

‘Healthy’ resale performance

The resale rate for the HDB market through 2022 is considered healthy as per Christine Sun, senior vice director of research and analysis for OrangeTee & Tie. The secondary market has achieved a solid performance despite prices falling in certain towns, which have reached record levels, and sellers are facing intense competition from the bumper collection of BTO launches, she adds.

Additionally that many homeowners resisted from putting their homes available for sale in the during the quarter, relying on an ‘attend-and-see’ strategy Mohan Sandrasegeran, senior analyst for content and research for One Global Group.

“It is probable that there are some (sellers) might have decided to wait for the market conditions to improve or see the effect of the most recent cooling measures that are in effect or to be reviewed prior to placing their homes for auction,” says Sandrasegeran.

He also says that over 100,000 people applied for 23,000 BTO flats which were announced in the year before. While the government has indicated that it will increase the availability of BTO over the next couple of years, the demand for BTO supply is often much higher than supply, says Sandrasegeran.

PropNex expects HDB prices decrease further in 2018 to an average of% or 8% due to the high-interest rates, resistance to price by buyers property cool measures and bleak economic outlook. “Meanwhile the the demand for HDB flats for resales is anticipated to be stable through 2023. We anticipate that between 27,000 and 28,000 flats may be resold in the coming year, roughly similar to 2022.” Wong says. Wong.