4 possible trends in HDB resale market

Expect new challenges in 2023, but also some opportunities for buyers to take advantage of

- Christine Sun

The Housing Board resale market may be cooling after rising to new heights in 2022.

Prices hit fresh highs in many locations, and housing demand was robust despite the record prices.

The latest wave of property curbs seems effective in putting the brakes on the red-hot housing market as sales volume dipped and prices softened in the last quarter.

The HDB resale market may experience new challenges in 2023, with fewer flats obtaining the minimum occupation period (MOP) and interest rates likely holding firm. Nevertheless, there are opportunities.

How will the market perform in 2023? Will prices continue to rise, and if so, what types of flats will be favoured? Here are four trends that may happen:

PRICES MAY GROW SLOWER IN 2023

Buyers may find some respite as prices of resale flats are projected to rise at a slower pace in 2023. Price growth has already weakened since cooling measures were implemented in September 2022.

According to the flash estimate for fourth-quarter 2022, HDB resale prices climbed by 2.1 per cent, down from 2.6 per cent in the third quarter. For the whole of 2022, prices rose by 10.3 per cent, less than the 12.7 per cent increase in 2021.

The smaller increment indicates that sellers are more willing to negotiate prices in the light of the property cooling measures, which have impacted the housing affordability of many buyers. There is also less demand from private home owners purchasing unsubsidised HDB resale flats since they must observe a 15-month wait-out period after selling their private homes.

This rule does not apply to those older than 55 who purchase fourroom or smaller flats. Furthermore, rising interest rates have affected buyers who are not eligible for an HDB loan.