Resale HDB prices to rise by 5% to 8%: OrangeTee
People will prioritise spending for basic goods instead of resale flats.
The prices of resale HDB market will rise by 5% to 8% in 2022 as people prioritise spending for basic goods and become reluctant to pay for resale flats said real estate firm OrangeTee & Tie.
This is on the back of data from HDB which showed prices increased by 2.4% in the first quarter (Q1) of this year, which is a slower pace compared to the 3.4% quarter-on-quarter increase in the fourth quarter (Q4) of 2021.
The real estate firm said this was expected because prices had already risen for eight consecutive quarters causing some price resistance.
OrangeTee also said worsening inflation may also prompt buyers to choose more affordable smaller flats or flats in non-mature estates.
On HDB sales, this was the first time in nearly two years that the sales volume dipped below 7,000 units. The momentum slipped to 6,934 resale flats transacted in Q1 2022, lower by 12.7% from 7,940 units sold in Q4 2021.
The decline in units last quarter can be seen most prominently in flat types.
With this, OrangeTee anticipates resale transactions to fall between 25,000 and 28,000 units in 2022.