Cooling measures and BTO launches dampen November HDB resale market activity

Resale volume dropped 9.6% in November to 1,951 units, the first dip below 2,000 in over a year.

The HDB resale market experienced a slight slowdown in November due to factors such as recent BTO launches and ongoing cooling measures, according to analysts.

The resale volume fell by 9.6% month-on-month to 1,951 units in November, marking the first time in over a year that monthly transactions dipped below 2,000 units.

Wong Siew Ying, research and content head at PropNex, attributed the decline partly to the reduced loan-to-value limit for HDB loans introduced in August and a seasonal lull in activity as the year-end approached.

She added that the bumper BTO supply in October, which featured about 8,500 flats in attractive locations, may have diverted demand from the resale market.

Mark Yip, CEO of Huttons Asia, observed similar trends and highlighted buyers’ preference for mature estates without restrictions tied to Plus and Prime flats. This contributed to faster price growth in mature estates compared to non-mature ones.

Yip also noted a decline in million-dollar flat transactions, with sales dropping to 87 units in November from 103 in October.

Both analysts expect the resale market to remain resilient despite recent declines. PropNex projected that HDB resale volume for 2024 may reach 26,000 to 28,000 units.

Meanwhile, Huttons estimated a slightly higher range of 29,000 to 30,000 units. Resale prices are forecast to grow by 8% to 10% this year, driven by steady demand and price resilience.