HDB resale volume falls below 2,000 for the first time since June 2021

The decline was attributed to slow market activity.

For the first time since June 2021, HDB resale volume dropped below the 2,000-unit mark, with only 1,904 units sold in February 2022. This represents a 22% month-on-month (MoM) and 12.1% year-on-year (YoY) drop in total resale volume.

By room types, 42.8% of the volume came from HDB 4 Room, 25.2% from 5 Room, 23.1% from 3 Room, and 7.1% from Executive, and the rest are from 2 Room and Multi-Generation, according to data from 99.co and SRX.

By estates, 56% of the resale volume in February 2022 came from non-mature Estates which is an increase from the 55.4% recorded in February 2021. The remaining 44% in the month are from Mature Estates.

PropNex said the decline can be attributed to  slower market activity over the Chinese New Year festive period and the rising COVID-19 cases “which had likely disrupted property viewings.”

The analyst also noted that the HDB launched a Build-to-Order exercise in February comprising of 3,953 new flats across six projects in Geylang, Kallang Whampoa, Tengah, and Yishun.

This “could also have encouraged some families to apply for the new flats instead of buying a resale flat – especially for those who are not in a hurry to move in,” PropNex added.

Last month’s volume, however, can still be considered “healthy” when compared to previous February sales in 2017 (1,089 units), 2018 (1,195 units), 2019 (1,314 units) and 2020 (1,668 units), according to OrangeTee.

“February is a shorter month and sales are typically slower during the Chinese New Year period. Moreover, viewing restrictions remain in place,” the analyst said.

“Further, 2021 sales volume was a year like no other and February 2021's sales level was much higher than previous years. Therefore, it may not be useful as a gauge for this year's performance,” OrangeTee added.

Rising prices

Whilst volume declined, HDB resale prices increased in February by 0.6% MoM, 99.co and SRX reported.

Prices increases were recorded across estate types, by 0.5% MoM for mature estates and 0.7% MoM for non-mature estates; and room types, by 0.5%, 1.4% and 0.5% for 4 Room, 5 Room, and Executive prices, resectly.

Only 3 Room prices decreased during the month by 0.1%.

Huttons said prices stayed firm "as buyers continued to compete to land their dream home."

"The tight labour situation in the construction industry may be resolved soon as Singapore moves to streamline the measures from March 13. This will make it easier to bring in new workers for the construction industry and accelerate the completion of homes. This will increase the supply of homes for sale and alleviate the supply-demand imbalance in the market," Huttons added.

Given the rising in prices, OrangeTee said demand for HDB reseal flats in 2022 might not be as strong as last year’s.