HDB resale volumes recover slightly in November; prices inch up: SRX, 99.co

RESALE volumes of Housing and Development Board (HDB) flats recovered slightly in November due to seasonal uplift, as buyers brought forward their purchases before hitting the holiday season in December, property analysts noted.

About 2,140 HDB resale flats changed hands during the month, 8.9 per cent higher than the number of flats resold in October. Year on year, resale volumes were 17.3 per cent lower, according to flash figures released by SRX and 99.co on Thursday (Dec 8).

The figures showed that the HDB resale market is gradually recovering from the initial shock in October after the latest round of cooling measures were introduced, said ERA Realty chief executive Marcus Chu.

According to SRX and 99.co data, around 61.7 per cent of resale transactions were for flats in non-mature estates, while the remaining 38.3 per cent were from mature estates. By room type, 42.2 per cent of volumes were for four-room flats, followed by 23.3 per cent from five-room, 25.2 per cent from three-room and 7.1 per cent from executive flats.

HDB resale prices continued to rise for the 29th straight month, climbing 0.6 per cent from October. Compared with a year ago, prices were up 10 per cent. Prices in mature estates were down 0.1 per cent, while resale prices in non-mature estates were up 1 per cent.

All room types saw price increases, with executive flats registering the highest gain at 2.5 per cent, followed by three-room flats at 0.9 per cent and four-room flats at 0.8 per cent. Five-room resale flat prices, meanwhile, were up 0.6 per cent.

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Year on year, executive, three-room, four-room and five-room flat prices were up 12.2 per cent, 9.7 per cent, 10.8 per cent and 10.7 per cent respectively.

“Many HDB owners have become more realistic in their asking prices and that may have helped to bridge the gap resulting in more flats sold in November,” said Huttons Asia chief executive Mark Yip. He noted that it may have also led to stable flat prices during the month.

PropNex Realty’s head of research and content Wong Siew Ying said HDB resale prices will not likely see a significant downward correction due to tight resale stock and stable demand.

PropNex expects HDB resale prices to rise by 9-10 per cent for the whole of 2022 and may see further growth next year, though at a slower pace, she added.

Notably, the number of million-dollar HDB flat transactions dropped by 35 per cent to 26 in November, from 40 in October. The number of such transactions comprised 1.2 per cent of the total resale volume for the month. The central area recorded five such transactions.

The most expensive resale flat sold in November was S$1.35 million for a five-room DBSS unit at The Peak @ Toa Payoh. For non-mature estates, the highest transacted price was S$1.1 million for an executive apartment unit at Woodlands Street 83.

Sales may remain moderate in December as buyers travel overseas and viewings drop, said Christine Sun, OrangeTee & Tie’s senior vice-president of research and analytics.

“The lull season may ride into January as sales activities tend to be more muted during the Chinese New Year period,” she noted.