Singapore HDB resale prices record smallest price hike in nearly three years

Resale prices rose 1% in Q1 2023.

According to the latest HDB data, resale prices climbed marginally by 1 per cent quarter-on-quarter (q-o-q) in Q1 2023, marking a third consecutive quarterly price slowdown. 

OrangeTee said in a report that this is the smallest price appreciation since Q2 2020 when prices increased slightly by 0.3 per cent after the COVID-19 circuit-breaker lockdown. Nevertheless, prices are still at a fresh record last quarter. Year-on-year, resale prices increased by 8.8 per cent in Q1 2023. 

Here’s more from OrangeTee:

The price softening comes amid higher housing inventory. The housing shortage is easing as more flats were completed over the past months. Further, the government has continued to launch BTO projects and released many new flats for sale. 

After 2022’s double-digit price gains, there were concerns that the pace of growth was unsustainable and cash-strapped buyers would be priced out of the market. Several cooling measures were then implemented in September 2022 to tighten borrowing limits and curb demand from private homeowners.

A combination of skyrocketing home prices, inflationary pressures and rising mortgage rates have lowered buyers’ housing affordability. Many stepped back to reassess their options and review their price offers. 

Rising global uncertainties and financial market volatility sparked by the banking crisis in the US further prompted buyers to be more prudent in their home purchases.