Prices of resale Housing and Development Board (HDB) flats increased by 1.5 per cent and resale transactions fell to the lowest in three years in the second quarter of 2023.

The Resale Price Index (RPI) for the second quarter of 2023 is 176.2, an increase of 1.5 per cent from the previous quarter, according to data released by HDB on Friday (July 28).

This is a higher increase than the 1.0 per cent growth in the first quarter of 2023 but lower than the average quarterly growth of 2.5 per cent in 2022.

The RPI reflects the general price movements in the resale market.

"We are seeing some moderation in the rate of increase in resale prices since the government’s implementation of a strong pipeline of supply, as well as the cooling measures to promote a stable and sustainable property market," said HDB.

Among the cooling measures implemented in December 2021, September 2022 and April 2023 were a wait-out period of 15 months before private property owners can purchase a non-subsidised HDB resale flat and the lowering of loan-to-value limit for HDB housing loans.

The resale volume for the second quarter is the lowest in the last three years since the third quarter of 2020, said HDB.

Resale transactions for the second quarter fell by 6.7 per cent, from 6,979 cases in the first quarter of the year to 6,514.

There are seasonal factors at play when it comes to resale volume, more so than for resale flat prices, said HDB.

"Compared to the second quarter of 2022, resale transactions in second quarter 2023 were also 4.5 per cent lower."

RENTALS

In the rental market, the number of approved applications to rent out HDB flats rose by 1.9 per cent from 9,657 cases in the previous quarter to 9,842 cases in the second quarter.

Compared to the second quarter of 2022, the number of approved applications in the second quarter of 2023 was 5.7 per cent higher, according to HDB data.

As at the end of the second quarter of 2023, there were 56,858 HDB flats rented out, a 0.4 per cent rise over the previous quarter's 56,652 units.

13,000 FLATS WILL BE LAUNCHED IN SECOND HALF OF 2023

A total of 13,000 Build-to-Order (BTO) flats will be launched in the second half of this year, said HDB.

This follows the launch of close to 10,000 BTO flats in the first half of the year.

“To meet the increased housing demand, HDB has ramped up the supply of (BTO) flats by 35 per cent, from 17,100 flats in 2021, to 23,200 flats in 2022, and 23,000 flats in 2023,” it said.

HDB added that the next sales exercise will be held at the end of September or early October instead of the usual end August to early September 2023 period.

This takes into consideration the ballot results for the May BTO and Sales of Balance Flats exercise, which will only be announced in the first and last week of August respectively, said HDB.

"This new timeline would allow interested flat applicants to know their queue position before deciding whether to apply for a flat in the next sales launch."

HDB will also have "more time to finalise the system changes needed" for the new First-Timer priority category and other changes that will take effect from the next sales exercise.

In the next BTO sales exercise, HDB will offer about 6,700 flats in towns and estates such as Choa Chu Kang, Kallang Whampoa, Queenstown, and Tengah.

For the final sales exercise of 2023, which will be held in December 2023, HDB will offer about 6,300 flats in towns and estates such as Bedok, Bishan, Bukit Merah, Bukit Panjang, Jurong West, Queenstown and Woodlands.

More details on the launch numbers and project details will be provided closer to the launch dates.

“HDB will continue to monitor housing demand closely and maintain a steady pipeline of supply. Meanwhile, we remain on track to launch a total of 100,000 flats from 2021 to 2025,” it said. CAN

Source:
courtesy of TODAY

by BY LEE CHONG MING

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