HDB resale prices ‘soften’ after September cooling measures

Price increases slowed to 2.3% in the fourth quarter.

Singapore’s cooling measures in September has taken effect in the fourth quarter of 2022 after resale prices of Housing and Development Board (HDB) flats increased at a slower pace. 

HDB flats increased by 2.3% to 171.9 in the fourth quarter of the year. 

This is slower compared to the 2.6% price increase in the previous quarter. The HDB also noted that this is the slowest recorded price movement in the past year. 

For the entire year, resale prices went up by 10.4%, also slower than the 12.7% increase in 2021. 

“The housing market is finally cooling after catapulting to new heights this year. Home prices dipped across most flat types and in many housing estates after cooling measures were implemented in September 2022,” OrangeTee noted.

“Price growth was modest last quarter because of September’s cooling measures and rising interest rates.”

Read more: HDB resale price increase slows to 2.3% in Q4 

PropertyGuru, meanwhile, noted the softening of prices likely also resulted from the rising interest rates amongst other factors. 

“While the September 2022 property cooling measures likely did play some part in moderating price growth and transaction volumes, the full impact cannot be accurately measured yet,” Dr. Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group, said.

“The rising interest rates, ‘revenge travelling’ which saw an increased number of individuals holidaying overseas in the fourth quarter, and lack of new major launches also contributed to the dip in prices and sales transaction volumes across the various regions.”