HDB resale prices rise 1.3% in Q3; slower growth due to cooling measures

 Prices of Housing Board resale flats showed signs of stabilisation in the third quarter of 2023, rising by 1.3 per cent – a slower pace when compared with the average quarterly growth of 2.5 per cent in 2022

- Isabelle Liew

It is the 14th consecutive quarter of price increase since the second quarter of 2020, according to data released by HDB on Friday.

The price growth in the third quarter was slower than the 1.5 per cent growth of the previous quarter.

HDB said: “We are seeing some moderation in the rate of increase in resale prices since the Government’s implementation of a strong pipeline of supply, as well as the cooling measures to promote a stable and sustainable property market.”

Such cooling measures include the 15-month wait-out period for private property owners who wish to buy an HDB resale flat, which was introduced in September 2022.

The loan-to-value limit for HDB loans was also lowered twice – from 90 per cent to 85 per cent in December 2021, and to 80 per cent in September 2022 – in a move to encourage prudent borrowing, HDB said.

Ms Christine Sun, senior vice-president of research and analytics at real estate firm OrangeTee & Tie, said the resale market’s price growth in 2023 was noticeably slower, at below 2 per cent per quarter.

In comparison, the quarterly price growth was above 2 per cent for each quarter in 2022, and above 2.9 per cent in 2021.

She said: “The trends indicate that the cooling measures and the increased housing supply are effective in taming the price hikes.”