In May, a total of 2,259 housing board resale flats were sold. This is a 4.8% increase compared to the same period last year.
Resale prices for HDB also climbed 0.3%, down from the 1.1% growth in April. Overall, HDB resale prices for May were up 7.7% compared to the same period a year ago.
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According to analysts, May’s results may be due to the effects of cooling measures introduced in September 2022, as well as the heightened supply of BTO flats in 2023, said Nicholas Mak, chief research officer at property portal Mogul.sg.
“The marginal price increase is a sign that the HDB resale market is stabilising. However, I don’t think resale prices will fall unless we have a very severe economic slowdown. Currently, there is still healthy underlying demand,” he added.
Since 30 September 2022, private homeowners must wait 15 months after the sale of their home to buy a resale flat without grants.
Another expert, Wong Siew Ying, PropNex’s head of research and content, said that the increase in grants for eligible buyers could have brought more buyers into the market.
“Some of the new Build-To-Order projects launched by the Government in the past 12 months are attractively located… These projects will attract many first-timers and second-timers to apply for the new flats, which will knock some wind out of the sails of the HDB resale market. As a result, HDB resale transactions could dip in the coming months, leading to an estimated 3% to 5% dip in the annual resale volume for the whole of 2023 compared with the previous year,” shared Mak.
In May, 36.1% of transactions were priced below S$500,000, compared with 37.4% in April. Meanwhile, 62.4% were transacted between S$500,000 and under S$1 million, up from 60.9% in the previous month.
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