HDB resale volume down, prices up 1.2% in June
Prices have climbed for the 24th straight month.
HDB resale prices have gone up by 1.2% in June, the 24th consecutive month prices have increased.
Meanwhile, resale volume dipped for the second consecutive month to 2,139 units, below the 12-month average of 2,400 units.
OrangeTee’s Senior Vice President of Research & Analytics Christine Sun attributed the sales dip to several factors such as fewer buyers during the June holiday season, some demand diverted to the BTO market and price resistance setting in as resale prices increased.
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Hutton’s Asia CEO Mark Yip said some buyers and sellers may have taken the opportunity to travel overseas, resulting in lower sales.
The increase in prices were unsurprising, according to PropNex Head of Research and Content Wong Siew Ying as healthy housing demand, tight resale stock, and positive market confidence amidst Singapore’s relatively optimistic economic outlook on the back of ramping trade and manufacturing momentum.
Mature and non-mature markets
Compared to a year ago, mature and non-mature estates prices increase by 10.2% and 12.3%.
“As prices of resale flats continue to rise, more buyers seem to be turning to the non-mature estates where prices of flats tend to be lower than those in the mature estates. For instance, the proportion of flats in non-mature estates has been climbing steadily from 56% in February 2022 to 58.9% in June 2022,” Sun said.
Due to the stronger demand, prices of flats in non-mature estates rose faster by 12.3% over the past year from June 2021 to June 2022. Comparatively, prices of resale flats in the mature estates grew at a slower pace of 10.2% over the same period.
READ MORE: HDB resale price index rises 2.6% QoQ in Q2
Yip said that the higher prices for flats in the mature estates may have diverted some demand to the non-mature estates.
“Some price sensitive buyers may have also adjusted their budget and bought a flat in non-mature estates to account for the higher interest rate. The proportion of sales in mature estates dropped to a low of 41.1% in June 2022,” Yip said.
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