HDB resale prices in Singapore rose by 4.9% in 2023 amid market stabilization efforts

The Housing and Development Board (HDB) has released its flash estimate for the 1st Quarter of 2024, showing a 1.7% increase in the Resale Price Index (RPI) to 183.5 from the previous quarter.

This follows a 1.1% increase in the 4th Quarter of 2023, with the combined growth rate for the past six months standing at 2.8%, equivalent to the total growth observed in the second and third quarters of 2023. The resale transaction volume up to 27 March 2024, has increased by 5.5% year-on-year, with 6,928 cases reported.

In contrast to the preceding years, the HDB resale market displayed a tempered growth rate in 2023, with prices increasing by 4.9%.

This figure is significantly lower than the 10.4% rise in 2022 and the 12.7% increase in 2021, indicating a move towards market stabilization. This moderation occurs amidst a backdrop of economic uncertainties, including potential impacts from global geopolitical tensions which might adversely affect supply and demand dynamics.

Given the expectation that domestic mortgage rates will remain higher compared to the low rates experienced over the past decade, the government suggests that households should exercise caution in their property purchasing decisions.

This advice comes in light of efforts to ensure a stable and sustainable housing market, with policies being adjusted as deemed necessary in response to market movements.

Additionally, HDB has reiterated its commitment to providing a range of housing options to cater to the varying needs and financial capabilities of Singaporeans, particularly for those buying a home for the first time.

As part of these efforts, more than 67,000 flats have been launched as of February 2024, with a target to launch 100,000 flats from 2021 to 2025. About 19,600 Build-To-Order (BTO) flats are planned for 2024, with 4,126 flats already offered in the February BTO and Sale of Balance Flats exercises, alongside 1,588 balance flats.

For the June 2024 BTO exercise, approximately 6,800 flats will be available in various locations, including Jurong East, Kallang/Whampoa, Queenstown, Tampines, Woodlands, and Yishun.

These efforts are part of a broader strategy to manage housing supply in anticipation of future demand. Prospective buyers are encouraged to apply early for a Home Financing Eligibility (HFE) letter, with a submission deadline for the June exercise set for 15 May 2024.