More towns to hit record HDB resale prices in 2023

As of July, 17 of the 26 towns in Singapore have already set record prices.

Real estate expert, OrangeTee, expects prices of HDB resale flats to hit record highs in more towns in Singapore.

As of July, the expert said 17 of the 26 towns have already hit record prices for HDB resale flats. The highest record was $1.5m in Bukit Merah.

Only five towns have yet to see a million-dollar flat as of July, including Sengkang, Jurong West, and Bukit Panjang, which OrangeTee said may see their first million-dollar transaction “soon since there were flats sold above $900.000.”

HDB resale prices have been rising for 13 consecutive months. In 2Q23, prices rose by 1.4% MoM.

In the same quarter, the average resale prices of flats increased in 21 out of 26 towns.

Amongst the 26 towns, Geylang registered the biggest price growth (18.7%), followed by Central Area (8.6%), Bedok (4.3%), and Tampines (4.1%).

Looking ahead, OrangeTee believes some demand may divert to the build-to-order (BTO) market, given that HDB will “continue to launch new flats in various locations in the second half of the year.”

OrangeTee, however, underscored that “some first-timers may be enticed as HDB will launch more flats in mature estates like Kallang/ Whampoa, Queenstown, Bedok, and Bukit Merah which are usually popular with buyers.”

“The completion times for many of these projects may also be shortened,” the expert added.

For the entire year, OrangeTee expert resale prices to continue increasing but at a slower pace of 4% to 6% in 2023.