HDB resale transactions to be muted in December: experts
Experts cite two factors for the slowdown.
Real estate experts expect a further slowdown in HDB resale transactions in December, following a 2.8% MoM drop in sales in November.
According to PropNex, the resale volume could ease slightly in December due to the year-end seasonal lull and the Housing Development Board’s December BTO sales launch, which will likely draw some prospective buyers from the resale market.
“More than 6,000 BTO flats in eight projects have been offered for application; they span seven towns, namely Bukit Panjang, Jurong West, Woodlands, Bedok, Bishan, Bukit Merah, and Queenstown,” PropNex underscored.
OrangeTee said demand for HDB resale flats had already been softening over the past few months due to a supply ramp-up in the Build-to-Order (BTO market) and the completion of more homes in the private market.
“In recent months, as close to 13,000 BTO flats have been offered by HDB. About 6,800 flats were launched for sale in October and 6,000 more flats were offered in December. This has given buyers more choices, and they may have opted for BTO flats instead of resale flats,” OrangeTee said.
“Further, many of the newly launched BTO flats have attractive attributes such as being well located, beside MRT stations or surrounded by ample amenities. The wait times for the new flats have also been shortened and serious buyers now have a higher chance of getting a unit,” OrangeTee added.
OrangeTee said some HDB upgraders are also buying newly completed condos instead of a bigger resale flat.
“Resale flat prices, especially for big units, have risen substantially over the past two years. Additionally, they do not need to pay an ABSD since they can shift into the newly completed condo immediately, making buying a new condo more attractive than buying a bigger resale flat,” OrangeTee added.
For the whole year, Huttons expect HDB resale transactions to hit 27,000.