HDB sales dips 3.5% YoY in Q2 22

Quarter-on-quarter, it fell by 1.7% in the second quarter of 2022.

Public housing data showed that HDB sales fell by 3.5% in the second quarter (Q2) of 2022, compared to a year ago, amidst rising inflation.

Data also showed that sales declined 1.7% quarter-on-quarter in Q2 2022.

HDB resale prices continue to rise, posting 2.8% in Q2 2022 compared to 2.4% in the first quarter (Q1) of 2022. On a yearly basis, prices went up by 12%. 

Resale transactions went down to 6,819 units in Q2 2022 from 6,934 units in Q1 2022.

One Global Group explained that the slower growth rate in prices was due to the release of build-to-order (BTO) flats in May and school holidays.

“As there was an overwhelming response for both the BTO and the Sale of Balance (SBF) flats that were offered in the month of May,” it said.

With rising bank interest rates, One Global Group said the fixed interest rates offered by HDB still serve as an appealing and stable option for risk-averse buyers.

READ MORE: HDB rents dip 3.4% in Q1 2022

Full-year outlook

For the next few months in 2022, OrangeTee said HDB will continue to launch more flats, which will avoid demand from the resale market and help regulate pace of price growth.

The real estate expert projects that over 25,000 to 28,000 resale flats could be transacted in the second half (H2) of 2022 whilst prices will rise by 7% to 9% for 2022.

PropertyGuru sees that waiting on the construction of flats and Singaporean’s demand for larger flat types will continue to increase HDB resale prices.

For Huttons, it warned that the resale market will be affected by affordable BTO flats, whose buyers will enjoy deferred payment. 

With this, Huttons expect HDB resale prices to increase 10% this year.