HDB resale quantity dropped by 24.1{0844f1eca30da9b38992423f20b0130305517cee64bb656bd0db0d22baef9f2a} in October

Following 28 months of value development within the HDB resale market, value resistance could also be kicking in.

As reported within the 99.co and SRX flash report on the HDB resale market in October, costs of HDB resale flats elevated by 0.5{0844f1eca30da9b38992423f20b0130305517cee64bb656bd0db0d22baef9f2a}.

Then again, the variety of HDB resale flat transactions has dropped by 24.1{0844f1eca30da9b38992423f20b0130305517cee64bb656bd0db0d22baef9f2a}, as 1,965 HDB resale flats had been transacted final month.

Pow Ying Khuan, Head of Analysis at 99 Group, famous that the decline in quantity is uniform throughout the board for nearly all room varieties, starting from 22.8{0844f1eca30da9b38992423f20b0130305517cee64bb656bd0db0d22baef9f2a} to 26.0{0844f1eca30da9b38992423f20b0130305517cee64bb656bd0db0d22baef9f2a}.

Christine Solar, Senior Vice President of Analysis and Analytics at OrangeTee and Tie, added that the 24.1{0844f1eca30da9b38992423f20b0130305517cee64bb656bd0db0d22baef9f2a} drop is the steepest month-to-month lower since April 2020, when gross sales plunged 78.3{0844f1eca30da9b38992423f20b0130305517cee64bb656bd0db0d22baef9f2a} from 1,949 models in March 2020 to 423 models in April 2020 in the course of the Circuit Breaker interval.

“The overall variety of transactions for the primary 10 months of the yr stands at 22,425 now, and it’s seemingly that we’ll see decrease volumes than final yr’s 29,181 when the yr concludes,” mentioned Pow.

Drop in resale quantity might not be attributable to cooling measures

The drop in HDB resale quantity got here after the most recent spherical of cooling measures that took impact on 30 September. Measures embrace a better stress-test for HDB and financial institution loans, a better loan-to-value (LTV) ratio restrict for HDB loans and a 15-month wait for personal property homeowners earlier than they’ll purchase an HDB resale flat.

infographic on HDB resale market in october

On the identical time, Pow highlighted the cooling measures might not have led to final month’s drop in quantity but, because it usually takes about eight weeks to finish an HDB flat sale.

“Somewhat, this may very well be due to a point of value resistance kicking in, contemplating that the median value of an HDB resale flat is at an all-time excessive at S$545,000, or 34.6{0844f1eca30da9b38992423f20b0130305517cee64bb656bd0db0d22baef9f2a} larger than its pre-pandemic stage in October 2019 when the median value was S$405,000,” Pow elaborated.

“In consequence, some consumers may stay on the sidelines to watch what might come subsequent in relation to the altering macroeconomic circumstances equivalent to quickly rising rates of interest.”

Decrease demand for greater flats briefly

By way of room varieties, 4-room HDB resale flats noticed the best value enhance at 0.7{0844f1eca30da9b38992423f20b0130305517cee64bb656bd0db0d22baef9f2a}, adopted by 3-room HDB resale flats at 0.4{0844f1eca30da9b38992423f20b0130305517cee64bb656bd0db0d22baef9f2a}. 5-room HDB resale flat costs remained unchanged. Then again, costs of govt flats dropped by 1.0{0844f1eca30da9b38992423f20b0130305517cee64bb656bd0db0d22baef9f2a}.

Given the worth change for the larger flats, Solar commented, “Demand for greater flats might proceed to expertise a brief pullback since some personal owners could also be postpone by the lengthy ready interval and now not want to purchase a resale flat.

“Nonetheless, some younger {couples} or upgraders in search of resale flats should buy huge flats when the costs reasonable or stabilise.”

 

2{0844f1eca30da9b38992423f20b0130305517cee64bb656bd0db0d22baef9f2a} of final month’s resale transactions are million-dollar HDB resale flats

Final month noticed 40 HDB resale flats transacted for no less than one million {dollars}. In line with Pow, that is additionally the second-highest month-to-month document, and twice as excessive as October final yr.

Solar defined that the choice to buy (OTP) for a few of these models might need been issued earlier than the cooling measures took impact. Some consumers may have been profitable of their appeals.

As well as, she famous that final month noticed the best variety of 4-room models bought over one million {dollars}, with six of such models being transacted in October.

This contains the S$1.37 million sale for a 4-room resale flat at [email protected], making it the costliest 4-room HDB resale flat.

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