Singapore’s property market saw a surprising shift in the first quarter of 2023, with HDB resale prices rising by a modest 0.9%, the smallest growth in the past 10 quarters, while prices of private homes went up 3.2%. This marks the first time since 2009 that private home prices have seen an increase in price while HDB prices have dropped. This article looks into the landscape of Singapore’s real estate market and what the future holds.
HDB Resale Prices Up 0.9% in Q1 2023
The Housing & Development Board (HDB) reported a 0.9% quarterly increase in resale prices of HDB flats in Q1 2023, which is the smallest growth in the past 10 quarters. The index for HDB resale prices rose 0.3% from the previous three months and 4.9% year-on-year. This is lower than the 1.2% rise in Q4 2020 and the 5.5% jump in the same period in 2020.
Private Home Prices Rise 3.2% in Q1 2023
The Urban Redevelopment Authority index for private residential prices saw a positive growth in Q1 2023, with prices increasing by 3.2% as compared to the quarter before. This was also slightly lower than what was recorded in Q4 2020 (3.3%). Year-on-year, however, private home prices rose by 14.2%, higher than the 12.1% increase in Q4 2020.
Analyzing the Data from Q1 2023
- With the slowest growth in 10 quarters, the HDB resale index rose 0.3% quarterly and 4.9% year-on-year.
- Private residence prices saw a 3.2% quarterly and 14.2% yearly growth.
- Both public and private home prices are still lower than the respective numbers from last year.
Experts suggest that the HDB resale market is expected to remain slow, with the lowest stock in a decade. Factors such as pandemic-induced job uncertainties, tighter lending rules and higher tax rates continue to weigh on the market. On the other hand, the private market is expected to remain healthy in the coming quarters, driven by pent-up demand, healthy liquidity and attractive mortgage rates.
Overall, Q1 2023 has been an interesting quarter in Singapore’s housing market, characterized by growing housing prices within private homes and declining housing prices within HDB resale. With these developments in place, the demand for housing in Singapore is expected to remain strong, but buyers are urged to be aware of the changes in the market, and exercise caution when making decisions.