In the wake of a historic high in HDB rentals for November, the trend appears to persist as HDB resale prices soar to new heights in December. This latest surge provides insights into the real estate market, shedding light on a dynamic landscape as the year closed.
December 2023 overview
As anticipated, HDB resale transaction volume experienced a minor dip of 6% towards the end of the year, influenced by the holiday season. Mr. Luqman Hakim, Chief Data & Analytics Officer at 99.co, notes, “This decrease aligns with the typical holiday slowdown we observe. However, we anticipate a resurgence in volume during the first quarter of 2024.”
Closing the year with a significant milestone, HDB resale prices achieved an all-time high, marking a year-on-year increase of 5.8%. Mr. Luqman comments, “While this growth is slightly slower than the 8.8% witnessed in the same period in 2022, it indicates a deceleration in the HDB resale market, suggesting a more stabilised trajectory.”
A noteworthy development in December was the uptick in million-dollar flats transactions, reaching 48 – six transactions shy of the record set in August 2023. Mr. Luqman highlights, “This surge contributes to a remarkable 25% increase in million-dollar flats sold throughout the entire year compared to 2022.”
Read more: August 2023 sees record breaking surge in million-dollar resale flat transactions
Resale price dynamics
In December 2023, HDB resale prices witnessed a 0.6% increase compared to November. This upward trend was observed in both Mature and Non-Mature Estates, with prices rising by 0.4% and 0.5%, respectively. When considering room types, 3 Room prices saw a 0.1% increase, 4 Room prices rose by 1%, 5 Room prices climbed by 0.5%, and Executive prices increased by 0.2%.
According to the SRX Property Price Index for HDB Resale, the year-on-year overall price increase was 5.8% from December 2022. Prices for all room types experienced year-on-year growth: 3 Room by 4%, 4 Room by 7.1%, 5 Room by 4.9%, and Executive by 5.1%.
The distinction between Mature and Non-Mature Estates revealed price increases of 5.9% and 5.5%, respectively, compared to the previous year.
This table provides a clear breakdown of the HDB resale price increases for December 2023 and the year-on-year comparisons across different categories:
| Metric | December 2023 | Year-on-year increase (from December 2022) |
|---|---|---|
| Room types | ||
| 3 Room | 0.1% | 4% |
| 4 Room | 1% | 7.1% |
| 5 Room | 0.5% | 4.9% |
| Executive | 0.2% | 5.1% |
| Mature estates | 0.4% | 5.9% |
| Non-Mature estates | 0.5% | 5.5% |
| Overall resale price increase | 0.6% | 5.8% |
Read more: Price gap analysis: Are HDB resale and condo prices narrowing?
Resale volume insights
A total of 2,006 HDB resale flats changed hands in December 2023, indicating a 6.2% decrease from November. Year-on-year, resale volume in December was 10.5% lower than the preceding year.
Breaking down the volume by room type, 25.9% comprised HDB 3 Room, 44.6% from 4 Room, 23.5% from 5 Room, and 6.0% from Executive. Furthermore, 61.8% of the resale volume in December 2023 originated from Non-Mature Estates, with the remaining 38.2% from Mature Estates.
Read more: November 2023 condo resale market analysis
Transaction highlights
The month witnessed the highest transacted price for a resale flat at S$1,420,000, achieved by a 1,130 sqft 5 room flat at Cantonment Rd (S$1,256 psf). In Non-Mature Estates, a 1,927 sqft executive apartment at Woodlands St 81 clinched the highest transacted price at S$1,038,000 (S$538).
Properties for you in Cantonment Road
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Moreover, December 2023 saw 48 HDB resale flats transacted for at least S$1,000,000 – an increase from the 45 units recorded in November. These million-dollar transactions represented 2.3% of the total resale volumes for the month.
Notable areas with such transactions include Ang Mo Kio, Kallang Whampoa, Bukit Merah, Queenstown, Toa Payoh, Central Area, Clementi, Bishan, Bukit Timah, Woodlands, Serangoon, Jurong East, and Geylang.
Looking to secure the best prices for your HDB flat? Connect with a premier property consultant today.
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