HDB resale flat prices up 10.3% in 2022
This is lower than the 12.7% in 2021.
This news come after news of that growth in private home prices has also slowed in 2022.
In addition, the flash estimate of the HDB resale price index (RPI) for the 4th quarter of 2022 was 171.7, an increase of 2.1% over the third quarter of 2022. This marks the 11th consecutive quarter that the RPI has risen.
This RPI growth is, however, lower than 2.6 per cent increase in the third quarter of 2022, and is the slowest increase in the 2022.
The modest growth in the last quarter could be due to the famous September 30th 2002’s cooling measures. HDB imposed cooling measures on Sep 30, including a 15-month wait-out period for private property sellers who want to buy HDB flats and tighter loan limits.
Also the interest rate environment has changed drastically in the past year. The fixed home loan rates offered by many banks are around 4 per cent, while some floating loan rates have already exceeded 3.5 per cent.
More HDB owners are open to negotiations after the cooling measures and it is reflected in the slower price increase. Also the number of million-dollar flat transactions appeared to have moderated in the last quarter after the Sep 30 cooling measures.
HDB Upcoming Supply with MOP flats
HDB said it has launched a total of 23,184 Build-to-Order (BTO) flats for sale in 2022 and this year, it plans to offer up to 23,000 BTO flats too.
However, the resale housing supply is expected to remain tight over the next few years. Flats reaching their five-year minimum occupation period are slated to drop significantly from 31,000 units in 2022 to 15,000 units in 2023. That is as much as 50% drop.
Although supply will fall this year, prices are not expected to rise extensively, given the cooling measures and as mortgage rates continue to climb.
Prices of HDB resale flats are expected to grow at a slower pace of 5 to 8 per cent in 2023.
