Singapore HDB resale volume declines for second straight month in September

Sales declined by 14.9% to 2,217 units during the month.

The resale volume of HDB flats declined for the second straight month in September, with an estimated 2,217 flats being resold – marking a fall of 14.9% from the 2,606 units in August, according to the SRX. 

On a year-on-year basis, transactions were up by 11.6% from 1,987 flats resold in September 2023.

According to Wong Siew Ying, Head of Research and Content, PropNex, several factors may have weighed on resale transactions in September, including the cooling measures (i.e. the cut in LTV limit for HDB loans to 75%) implemented from 20 August which could have led some buyers and sellers to hold back from transacting, so as to monitor the measure’s impact on the market. 

“In addition, perhaps some families may be waiting for the upcoming build-to-order (BTO) sales exercise in October, where the HDB is expected to launch about 8,500 new flats for sale, including several projects in choice locations and near to an MRT station,” Wong added.

Here’s more from PropNex:

Despite the decline in sales in September, the SRX report indicated that HDB resale prices rose by 1.8% MOM, and were up by 10% YOY from September 2023. This marks a year of monthly consecutive price increase in the HDB resale flat segment since October 2023, based on SRX’s data. Anecdotal observations suggest that the demand for HDB resale flats remains healthy, including from some buyers who may feel that they are priced out of purchasing a private condo of comparable size in the same area.

HDB’s transaction data showed that 25.5% of resale flats sold in September were priced at below $500,000 – slightly lower than the 26.6% proportion in August. Meanwhile, 69.7% of flats were resold at $500,000 to just under $1 million, a shade higher than 69.4% in the previous month. Resale HDB flats sold for at least $1 million made up 4.8% of September’s sales volume – up slightly from 4% in August (see Chart 1).   

Of note, the proportion of sales in the price bands ranging from $800,000 to under $1 million seemed to have stabilised in the month (see Chart 1), either flat or easing marginally in September from August. Meanwhile, the proportion of sales in the $600,000 to $700,000 and $700,000 to $800,000 price bands ticked up slightly in September.

Chart 1: Proportion of HDB resale transactions by price range

The number of million-dollar resale flats transacted in September continued to be elevated, reaching 106 units – the third straight month where such sales tipped over the 100-unit mark. The million-dollar flats resold in September comprised 42 units of 4-room flats, 39 units of 5-room flats, and 25 units of executive flats. 

By location, 11 of the units (all executive flats) resold are in non-mature towns, namely in Hougang, Woodlands, Bukit Timah, Yishun, and Jurong East. The rest of the million-dollar flats are in mature estates, with four towns clocking double-digit sales and leading the pack in September: 20 units in Kallang Whampoa; 13 units in Queenstown; 12 units each in Toa Payoh and Bukit Merah.

The top resale transaction in September was for a 5-room unit in Kim Tian Road which fetched $1.58 million. The flat has a floor area of 113 sq m (about 1,216 sq ft) and is located on a high floor ranging between the 40^th and 42^nd storey.

In early-October, there have been 14 units of million-dollar flats resold (data retrieved on 7 October), comprising flats in Ang Mo Kio, Bukit Merah, Bukit Timah, Kallang Whampoa, Queenstown, Serangoon, Tampines, and Toa Payoh.