No recovery yet for HDB resale market despite rebound in sales volume

The sales volume recoiled by nearly 9% month-on-month in November.

The HDB resale market rebounded in November two months after cooling measures were launched but this development does not indicate market recovery, OrangeTee said.

Christine Sun, who leads the research in OrangeTee, said the sales volume for the resale market is still lower than two months prior to the property cooling rules. In July sales were at 2,364 units.

Commenting on the rebound, Sun said buyers immediately brought their purchases before going on holiday in December. Others may have chosen to purchase a new home before the upcoming Chinese New Year. 

Moderated million-dollar sales

Meanwhile, the count of million-dollar flat transactions may have moderated in November following the cooling measures, Huttons Asia CEO Mark Yip said.

Over 26 flats were sold for $1m or more in November compared to 40 in October. 

Yip sees that the number of transactions will likely be around 15 to 25 in December.

“In 2022, the number of million-dollar flats may be around 370 or 1.3% of total transaction volume,” said Yip.

“Many HDB owners have become more realistic in their asking prices and that may have helped to bridge the gap resulting in more flats sold in November. That may also have led to stable flat prices in November,” added Yip.

Seasonal lull

There will be slowed activity expected in December due to upcoming holidays, where people are likely travelling overseas for their celebrations, according to PropNex Realty research head Wong Siew Ying.

House viewings have also dropped and the lull season may continue until January as sales are muted during the Chinese New Year period, Sun said.