Private homes prices up 0.5% despite lower sales in Q3

HDB upgraders prefer buying fewer but pricier homes: report

Private home prices see a rebound of 0.5% amidst fewer purchases by HDB upgraders in Q3 2023, but recovery is likely attributed to HBD upgraders buying pricier private homes.

According to a report by OrangeTee, the number of private homes purchased dipped last quarter. However, more HBD upgraders favour purchasing pricier homes, with hundred units valued higher than $3m and the priciest reaching $13.5m.

In the first nine months of 2023, the number of non-landed homes and condos purchased by HDB addressees decreased by 50.1%, from 7,766 units last 2013 to 3,876 units in the same time this year.

The report said that with prices climbing faster, the trend shifts towards private homes with higher prices and value, with HBD upgraders purchasing 732 non-landed homes for at least $2m – an 86.3% increase from the 393 purchases during that first three months in 2013. It contributed to a lower sales volume, simultaneous with the gradual rise of prices, according to estimates from the Urban Redevelopment Authority (URA).

ALSO READ: Fewer Singaporeans expect inflation to decline: DBS, SMU survey

Relating to the behaviour of HBD homeowners and upgraders, the report concluded that prices may grow by 5.5% for 2023, and sales volume may land between 17,000 and 19,000 units, a decline from 21,890 units sold in 2022.

Christine Sun, Senior Vice President of Research & Analytics at OrangeTee, said that currently, there were more signs of price resistance as total sales gained in Q3 2023 ranged from 5,501 units in Q2 to 4,995 units. With interest rates and monthly payments staying higher, homeowners may face a pushback from higher prices and lean on private homes with the best value.

For the first three quarters, OrangeTee recorded 112 condos purchased for less than $5m and 12 units around $10m on properties like Wallich Residence, Cairnhill Astoria, Cityvista Residences, Terra Hill and Sceneca Residence. And the unit with the highest price – a St. Regis apartment – is valued at S$13.5m.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia