Singapore HDB resale prices to grow by 3-5% this year

Analysts expect around 26,000 to 28,000 transactions to be completed.

In December 2023, Singapore’s HDB resale volume experienced a decline for the second consecutive month due to the slowdown in the market activities during the year-end holidays. 

Moreover, OrangeTee says the sales were impacted by demand shifting to the BTO market, as approximately 6,000 new flats were launched for sale in December.

Here’s more from OrangeTee Research:

The price growth remained modest, with an increase of just 0.6 per cent month-on-month in December. This is the eighth consecutive month where the monthly price growth either dipped or rose by less than 1 per cent. For the whole of 2023, prices rose by 5.8 per cent.

We predict that prices may continue to grow modestly this year, with a growth rate of approximately 3 to 5 per cent. The total resale volume may maintain its stability this year, with around 26,000 to 28,000 transactions.

Certain market segments, particularly big flats, may experience higher demand in the first half of this year. This is because the first batch of private residential property owners who intend to buy HDB resale flats will have fulfilled their 15-month wait-out period since the implementation of the rule in September 2022. Therefore, some of these private home downgraders may purchase bigger units like 5-room or executive flats.