Every quarter, The Housing & Development Board (HDB) releases a comprehensive database of price indices and sales volume for the public housing segment. Ohmyhome analyses this huge chunk of data and picks out the most relevant points and trends for readers.
HDB resale transactions in 1Q2022 declined by 12.7%, with 6,934 resale flats transacted as compared to the 7,940 flats sold in 4Q2021.
The drop in demand can be attributed to the viewing restrictions that were in place, Chinese New Year festivities and the strong interest for February’s Build-To-Order (BTO) exercise.
It is also likely that some homeowners might have been on the sidelines and contemplating their decision to put their flats for sale on the market, to evaluate the impact of the property cooling measures as well.
Slower price growth in 1Q22
As a result of the cooling measures in place, the pace of resale price growth moderated at a price change of 2.4%.
The slower growth in the HDB resale prices can be attributed to the property cooling measures in place, the drop in demand, the presence of viewing restrictions, the strong interest for February’s Build-To-Order (BTO) exercise and likely price resistance setting in as well.
Cautious buyers may have been on the fence and assessing the market conditions before pulling “the trigger” as well.
As we can clearly see that the prices for the varying flat types are growing at a slower pace as compared to the previous quarter.
With median resale prices for 5-room flats evidently reflecting that price resistance has set in. As the percentage change in resale prices plunged to 1.9% in 1Q2022 as compared to the 4.5% price change in 4Q2021.
83 million dollar deals in 1Q2022
Updated figures from data.gov.sg reflected a total of 83 million dollar deals in the first quarter of 2022. It was a minor dip of 2.4%, as compared to the 85 deals in the fourth quarter of 2022. However, it completely outpaced the 53 deals in 1Q2021.
Buyers of such flats are generally unfazed by exorbitant prices and have ample liquidity, as they place heavy emphasis on locational attributes and having a spacious home.
The most expensive flat ever to be transacted occurred at the Pinnacle @ Duxton. A five-room flat at the Pinnacle @ Duxton was sold for a price of $1.39 million in 1Q2022 as well. Surpassing last year’s high of the five-room HDB DBSS flat in Bishan, which was sold for S$1.36 million. These transactions may have contributed to the overall resale prices to keep pace with the rate of positive price change as well.
Outlook for HDB resale market
We expect the HDB resale market to remain resilient in the coming months. Based on the estimates of the completion status of HDB flats, 2022 will have the highest number of expected flats reaching its Minimum Occupation Period (MOP) since 2019. As the HDB resale market will continue to be supply-led with more than 31,000 HDB flats becoming eligible for resale.
In addition, with lingering uncertainties in the construction industry, buyers with urgent housing needs will continue to rely on resale flats as opposed to BTO flats. The ongoing geo-political tensions could likely lead to supply chain disruptions, further adding pressure on prices of construction materials. This could lead to further delays in building of new flats as well.
With such likelihood of ambiguities, buyers who are risk-averse and couples who are looking for immediate occupation will continue to shift their attention towards the resale market.
Looking to dip your toes into the HDB resale market?
Let Ohmyhome’s smart data-matching technology MATCH you with the right home, according to your specific needs. Submit your preferences to us and our algorithm will filter all our available listings based on those, and we’ll WhatsApp them to you once we find a match. We’ll also send you relevant content that you can use for your research and inform your home buying decision, so you no longer have to spend hours searching online for the information that you need.
Experience seamless, fast and exceptional service from our Super Agents. Chat with us at the bottom, right-hand corner of the screen. Or WhatsApp us at 9755 1009 to get in touch.