HDB resale transactions rose by 2.9% in the 3Q2023 despite falling prices. They reached 6,592. It could be because more grants were given to first-time buyers of HDB resale apartments, and the delayed launch of the Build-To-Order sales in August, which diverted many Singaporeans into the resale sector.

Interest rates have been higher than expected for longer, which has affected the affordability of homebuyers.

Similarly, the percentage of buyers who chose executive apartments increased from 5.5% up to 5.9%. Two-room apartments also increased in popularity, from 2.3% to 2,8%. Three-room apartments went from 23,1% to 24,6%.

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Bukit Panjang’s first million-dollar apartment transaction was $1.02m for a 1,367 square foot executive flat on Jelebu Road. Only four towns have not yet recorded a million dollar flat transaction – Sengkang (Chou Chu Kang), Jurong West, and Sembawang.

In the future, interest rates will continue to influence affordability. Many local banks offer HDB loans above 3%. Not everyone is eligible to borrow from HDB at 2.6. As more flats go up for sale, there may also be a shift in demand to the BTO.

On a year-over-year basis, however, the volume is 9.7% less than 3Q2022, when 7,298 units were sold. Four-room apartments saw a drop in sales from 45.7% to 43.8% from 2Q2023, while five-room apartments dropped from 23,4% to 22,9%.

HDB resale price growth in 3Q2023, a 14. consecutive quarter of increases, was 1.2% qoq. The growth in 3Q2023, however, is less than the 1.5% increase in 2Q2023 or the 2.5% quarterly average growth in 2022. Prices have increased 3.8% year-to-date in the first nine month of this calendar year. This is lower than the 8% increase over the first three months of 2022.

Geylang recorded the largest drop of 3.6% q-o-q, followed by the Central Area (down 3.4%), Bukit Batok (down 2%) and Sembawang (1.8%). Geylang recorded the largest drop of 3.6% from quarter-to-quarter, followed by Central Area (down 2.8%), Bukit Batok (2%) and Sembawang (1.8%). Bukit Timah, Serangoon and Central Area saw the largest q-o q price increases in 3Q2023. These were 38.1% and 10% respectively.

HDB flat prices have been growing slower in the 3Q2023, indicating a price resistance. On the other hand, the number of million-dollar flats sold in the same period reached a new record. The slower growth in prices for the market as a whole and in some towns last quarter indicate that consumers are resisting further price increases.