5 Most Affordable Areas to Invest in Property in Singapore
Singapore is known for being one of the most expensive cities in the world, particularly when it comes to property...
Read More
TLDR: Understanding the HDB Market Outlook 2023
The HDB resale market showed resilience in 2022, with significant growth in sales and prices driven by factors like economic recovery and delays in new BTO flat completions. Despite cooling measures, prices are expected to remain relatively stable in 2023, with a forecasted growth rate of 6 to 8%. Demand will be supported by housing grants for first-time buyers. Additionally, million-dollar HDB resale transactions are on the rise, particularly in prime locations. The market is expected to see continued activity with fewer MOP flats entering the market compared to 2022.
Overview
The HDB resale market remained resilient in 2022, with more than 24,000 units resold in the first 11 months of 2022. Meanwhile, HDB resale prices are expected to post another year of double-digit growth.
The economic recovery, delays in the completion of new BTO flats, and a large supply of flats exiting the minimum occupation period (MOP) were all factors that have contributed to driving sales and price growth in 2022.
HDB Resale Market Outlook
- Despite the recent cooling measures – aimed at encouraging home buyers to be more prudent with property purchase amid high interest rates – HDB resale prices are not likely to see a significant downward correction, as the tight resale stock and stable demand will help to keep prices relatively steady. PropNex projects HDB resale prices could rise by 9% to 10% for the whole of 2022, slowing from the 12.7% growth in 2021.
- The temporary 15-month wait-out period intro- duced as part of the latest cooling measures will moderate demand for larger flats, especially flats in prime locations. For first-timer buyers, this helps to level the playing field by easing demand from private home downgraders, who tend to have a greater financial ability to pay a higher price for resale flats.
- In 2023, HDB resale prices may grow at a slower pace following two years of robust performance. Together with the cooling measures and some price resistance setting in, this may slow the pace of the overall price increase. PropNex forecasts that HDB resale prices may grow by 6 to 8% in 2023.
- With fewer MOP flats entering the market in 2023 compared to 2022, the available stock for resale could remain tight. PropNex expects the HDB resale volume to come in at around 27,000 to 28,000 flats in 2023. Demand will continue to be driven by those with more pressing housing need as well as families who do not wish to wait 3-5 years to get a BTO flat. Notably, eligible first-time buyers can also receive up to $160,000 in housing grants from the government, making HDB resale units attractive to Singaporean households.
Transactions and Prices
- As of Q3 2022, the HDB resale price index has grown by nearly 8% from the end of 2021.
- By flat type, the average resale price of 3-room HDB resale flats rose from 2021 to 2022 to $388,000, while that of 4-room and 5-room HDB resale flats increased to $548,000 and $654,000 respectively.
- An estimated 31,325 flats have completed their 5-year MOP in 2022, possibly injecting fresh supply of units to the resale/rental market. In 2023, about 15,700 HDB flats are likely to attain MOP – substantially lower than the MOP stock in 2022.
- The HDB estates that clocked the most resale trans- actions in 2022 were in non-mature towns such as Sengkang, Yishun, and Punggol – more than 2,100 flats in Sengkang were resold in the first 11 months of the year – being popular among home buyers due to their more affordable pricing and a wider selection of units.
Million Dollar HDB Resale Transactions
- In the first 11 months of 2022, more than 340 HDB flats were resold for at least $1 million – already surpass- ing the record 259 deals done in the whole of 2021.
- Most of these million-dollar flats are either located in prime mature estates or have fairly large floor areas which contributed to their hefty price tags. The HDB towns of Central Area, Bishan, Toa Payoh and Bukit Merah had the highest number of million-dollar resale flat deals in 2022. The most expensive resale flat sold in 2022 was a 5-room flat at SkyTerrace @ Dawson that went for $1.418 million in July.
Wondering What Move To Make In The Real Estate Market?
Whether it’s time to buy or sell, or if it’s best to wait, the decision can be confusing.
Keep in mind that everyone’s situation is different, and it’s important to consider your own unique circumstances before making a decision.
But don’t worry – my data-driven approach and years of on-the-ground experience will help provide clarity to you.
Whether you’re a first-time homebuyer or an experienced investor, we will take a systematic and goal-oriented approach to ensure you make the right decision.
I can help you by :
- Providing Strategic Property Advice – will ensure you have the right plan to guide you in your property journey.
- Finding the ideal buyers for your home – use of high quality photography, excellent response rate, and a deep knowledge of buyers gives us the edge to showcase your property in the best way possible, helping you meet your goals.
You May Also Like …
Beware! Spot These Warning Signs Before Making a Home Purchase!
TLDR When purchasing a property in Singapore, it is crucial to thoroughly assess various aspects of the home to avoid...
Read More
How Can Decoupling Help You in Buying a Second Property?
TLDR Decoupling property ownership in Singapore can help you avoid hefty Additional Buyer's Stamp Duty fees when purchasing a second...
Read More
Where to Find the Most Affordable New Launches in 2023 – Starting at $1.31 Million
TLDR When looking for an affordable new launch condo in Singapore as of January 2023, consider projects like 10 Evelyn,...
Read More
Top 5 : Tips To Plan Your Retirement in Property Investments in Singapore
Planning for retirement is a crucial aspect of financial management, and property investment has emerged as a popular strategy for...
Read More
Top 5 : Must-Do Experiences to Make the Most of Your Singapore Trip
Singapore, a vibrant island city-state located off the southern coast of Malaysia, is a melting pot of cultures and a...
Read More
Why Chinese Investors Should Not Be Deterred by ABSD: 5 Reasons
Why Chinese Investors Should Not Be Deterred by ABSD: 5 Reasons Here are the top 5 reasons why Chinese investors...
Read More
Singapore Property Price Set to Explode Upwards in 2024?
TLDR Understanding the factors influencing property prices in Singapore for 2024 can help in making informed decisions. Despite high rental...
Read More
Top 5 : Golden Tips to Spot a Good Investment Property
Investing in real estate can be a lucrative venture, but it's essential to know how to spot a good investment...
Read More
Top 5 Vegetarian Restaurants in Singapore
Singapore, a melting pot of cultures and cuisines, offers a diverse range of dining options for food enthusiasts. For vegetarians,...
Read More
5 Reasons Why Singapore Loves Investing in Properties
Property investing is a popular and lucrative option in Singapore due to several reasons. Firstly, Singapore's stable and growing economy...
Read More
The 5 Hottest Neighborhoods in Singapore for Real Estate Investment
Hey everyone! Today I want to share with you the 5 hottest neighborhoods in Singapore for real estate investment. These...
Read More
Top 5 Tips: Gain an Edge in the Singapore Property Market: Steps to Boost Your Investment Returns
The Singapore property market has always been a hotbed for investors looking to make substantial returns on their investments. As...
Read More
Is Singapore’s Property Market on the Verge of a Crash? Understanding the 5 Factors at Play
The Singapore property market has long been an attractive option for both local and international investors. However, as with any...
Read More
Downpayment For Condo: How Much Do First-Timers Need In Singapore?
TLDR The blog post delves into the complexities of condo downpayments in Singapore in light of the impact of Covid-19...
Read More
The Top 5 Impact Of Singapore’s Ageing Population On The Property Market And Investment Opportunities
Singapore's ageing population is having a significant impact on the property market and investment opportunities. The top five effects include:...
Read More
Why The URA Master Plan Matters For Your Property’s Potential
TLDR The URA Master Plan entails significant shifts like the relocation of Paya Lebar Airport or creation of Punggol Digital...
Read More
4 Key Factors to Consider When Purchasing a Private Property for the First Time
TLDR When considering buying or selling property in Singapore, it's crucial to understand factors like Additional Buyer’s Stamp Duty, Loan-To-Value...
Read More
5 Reasons : Can Your Real Estate Investment Hedge Against Inflation?
Inflation is an economic phenomenon that can have a significant impact on an individual's financial well-being. As the cost of...
Read More
The Future Of Singapore Property Investing: 5 Trends To Watch Out For
The future of Singapore's property market is shaped by several emerging trends that reflect cautious optimism, enviable locations, and sociable...
Read More
