HDB resale flat prices up 10.3% in 2022, slower than 12.7% increase in 2021

The resale volume in the fourth quarter, up to Dec 29, was 6,474, which is 15.8 per cent lower than the same period last year, when 7,692 units changed hands.

For the full year up to Dec 29, the total resale volume was 27,773, which is 9.7 per cent lower than the 30,769 transactions in the corresponding period last year.

UPCOMING FLAT SUPPLY

HDB said it has launched a total of 23,184 Build-to-Order (BTO) flats for sale in 2022 and this year, it plans to offer up to 23,000 BTO flats.

In February, HDB will offer about 4,400 BTO flats in towns and estates such as Jurong West, Kallang Whampoa, Queenstown, and Tengah. In May, HDB will offer between 3,800 to 4,800 flats in Bedok, Kallang Whampoa, Queenstown, Serangoon and Tengah.

HDB said these numbers are “subject to review as more project details will be firmed up closer to the launch dates”.

Ms Sun said that the resale housing supply is expected to remain tight over the next few years.

Flats reaching their five-year minimum occupation period are slated to drop significantly from 31,325 units in 2022 to 15,748 units in 2023, dipping further to 13,093 units in 2024 and 8,234 units in 2025.

“Although supply will fall this year, prices are not expected to rise extensively, given the cooling measures,” she said.

“Some buyers may also hesitate to pay too much for a flat when mortgage rates continue to climb. Prices of HDB resale flats are expected to grow at a slower pace of 5 to 8 per cent this year.”

Dr Lee Nai Jia, head of real estate intelligence (data and software solutions) at PropertyGuru, also thinks HDB resale demand should gradually taper off in 2023, with more BTO offerings.

“We should expect the momentum of the price appreciation to slow and the HDB resale market to stabilise, barring any economic shocks,” said Dr Lee.

The flats that are expected to fulfil the minimum occupation period are mostly located in Bukit Batok, Yishun, Buangkok and Sembawang, so these estates may see greater resale flat price growth in the coming year, he added.