HDB Resale Volume Eases in April 2023 as Market Recovers Post-Cooling Measures

HDB RESALE
VOLUME EASES
IN APRIL 2023
POST-COOLING
MEASURES
In April 2023, there was a slight easing in
HDB resale volume. This development
comes as the market gradually finds its
stability following the implementation of
cooling measures in September 2022.
Read more to find out.
JUN2 2023 // PREPARED BY MELVIN LAU

#PROPWITHMEL PAGE | 02
HDB RESALE MARKET: EASING
VOLUME, STABILIZING PRICES,
AND GROWING INTEREST
The HDB resale volume eased slightly from March to April, falling by 4.2% MOM to
2,191 units, according to the latest transaction data. When compared to April 2022,
resale transactions were down by 3.1% YOY. This follows the 24% MOM increase in
sales volume in March.
Following the recent fluctuations in sales volume, the HDB resale market is finding its
footing and likely stabilising after the introduction of new cooling measures in
September 2022, where tighter lending limits affected the loan amounts that buyers
can borrow (from HDB loans) to finance their flat purchase. The government also
announced an increase in the CPF Housing Grant amounts for eligible resale flat
buyers in February, which has helped to boost resale enquiries.
Latest signs point to a moderation in HDB resale price growth, and this could
encourage more prospective buyers to review their options in the resale market.
According to the HDB resale price index, resale flat prices grew by a slower pace of 1%
QOQ in Q1 2023. However, the misalignment of price expectations between sellers and
buyers may limit the pace of transaction growth over the next few months.
In April, HDB flats in non-mature estates accounted for about 62% of the monthly
resales volume, with Punggol, Sengkang, and Woodlands being the top three most
popular estates (187, 180, and 178 transactions respectively).

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HDB RESALE PRICES SHOW
RESILIENCE DESPITE SLOWER
SALES: AVERAGE PRICES TICK
HIGHER, PARTICULARLY FOR 5-
ROOM FLATS IN NON-MATURE
TOWNS
Chart 1: HDB resale volume and average transacted price by month
Source: PropNex Research, Data.gov.sg
Despite the slower sales, transaction data showed that the average price of HDB resale flats
have ticked higher from March to April, climbing by 1.2% MOM to $573,402 (see Chart 1).
Average resale prices of 3-room and 4-room flats posted marginal MOM declines of 0.9% and
0.7% respectively, while that of 5-room flats rose by 1.5% and executive flats’ average resale
price was muted, inching up 0.3% MOM in April (see Table 1).
Accessing by flat types and towns, data showed that 5-room resale flats in non-mature towns
booked the largest average price growth from March to April, rising by 2.5% MOM (see Table
2). Mirroring the overall price trend, average resale prices of 3- and 4-room flats dipped
slightly in mature estates, while that of non-mature towns posted slim MOM growths in April.
The average resale prices of 5-room and larger flats generally remained resilient across all
estates, staying in positive price growth territory.

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In April 2023, mature towns dominated the top 3 lists of estates with the highest
average transacted price on a per square foot basis ($PSF) by flat types (see Table 3).
Four-room resale flats in the Central Area achieved the highest average unit price in
April at $1,052 psf – pushed up by four transactions at the Pinnacle @ Duxton, where
the units fetched at least $1 million each.
Looking at transaction data, about 37.4% of resale flats sold in April were priced at
below $500,000, compared to 39.4% in March. Meanwhile, about 60.9% of the flats
resold in April were transacted at between $500,000 and just under $1 mil – rising
from the 58.9% in the previous month. The proportion of resale flats sold for at least
$1 million accounted for about 1.7% of April’s transactions, on par with that of March
(See Chart 2).

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RESALE VOLUME OF MILLION-DOLLAR
FLATS DECLINES IN APRIL, WITH
NOTABLE TRANSACTIONS IN MATURE
AND NON-MATURE TOWNS
Chart 2: Proportion of HDB Resale Transactions by Price Range
Source: PropNex Research, Data.gov.sg
The resale volume of flats sold for at least $1 million came in at 37 units in April –
down by about 5% from 39 units in March (see Chart 3). All but two of the 37 units are
located in mature towns (Ang Mo Kio, Bedok, Bishan, Bukit Merah, Central Area,
Clementi, Kallang Whampoa, Queenstown, and Toa Payoh). Meanwhile, a 144-sq m
executive flat in non-mature town, Bukit Batok was resold for just over $1 million,
while a large 181-sq m executive flat changed hands for $1.05 million in Yishun.
Of note, a 95-sq m resale 4-room flat at Pinnacle @ Duxton in Cantonment Road
fetched $1.4 million in April, becoming the most expensive 4-room resale flat to be
transacted (see Table 1). The unit has a remaining lease of over 86 years and it is
located within the floor range of 46 to 48 floor. This deal smashed the previous 4-room
resale flat price record of $1.37 million – also at Pinnacle @ Duxton – that was
transacted in October 2022. Apart from the 4-room flat that was transacted for $1.4
mil, another 5-room flat at Pinnacle @ Duxton was also resold for the same price (see
Table 3).

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Chart 3: Number of “Million-dollar” HDB Resale Flats sold By Month
Source: PropNex Research, Data.gov.sg

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STRONG DEMAND FOR MILLION-DOLLAR
HDB FLATS: 5-ROOM FLATS LEAD,
RESALE TRANSACTIONS INCREASE IN
2023
By flat type, 5-room flats accounted for 16 units of the 37 resale flats that were sold
for at least $1 million, while executive flats and 4-room flats made up 11 and 10 units
of the resale transactions respectively.
In the first 4 months of 2023, there were 140 HDB flats that were resold for at least $1
mil – up by nearly 33% from 105 units in the corresponding period in 2022. According
to sales data, three such HDB flats – one each in Central Area, Clementi, and Yishun -
have been resold in May 2023 so far. The demand for such flats appears to be stable
and it is expected that their transaction numbers will continue to be elevated in 2023,
with a potential to exceed the 369 deals done in 2022.

Prepared and Created:
Melvin Lau
R067207F
Contact: +65 8826 9398