HDB Resale Volume Drops 14.9% MoM in September
Sunday, Oct 6, 2024 11:36 pm ET
The HDB resale market experienced a significant decline in transaction volume in September 2024, with a 14.9% month-on-month decrease compared to August. This drop in volume has raised concerns about the state of the HDB resale market and its potential impact on both upgraders and private property owners.
Several factors contributed to the decrease in HDB resale volume. The introduction of cooling measures in August, including the reduction of the loan-to-value limit for HDB loans, may have discouraged some potential buyers from entering the market. Additionally, the upcoming BTO exercise in October could have drawn some buyers' attention away from the resale market. The reduced supply of flats available for resale, due to fewer flats reaching their minimum occupation period (MOP), further exacerbated the situation.
The decline in HDB resale volume has had an impact on the average resale price of HDB flats. Despite the drop in volume, the average resale price climbed by 1.2% month-on-month in September, reaching nearly $628,549. This increase in price, despite the decrease in volume, suggests that demand for HDB resale flats remains strong.
The decrease in HDB resale volume may have implications for HDB upgraders and private property owners. HDB upgraders may face increased competition for available flats, driving up prices and making it more difficult for them to find suitable replacement homes. Private property owners may also be affected, as some upgraders may default to the HDB market, driving transactions and prices up.
The upcoming BTO launches and cooling measures may influence the HDB resale market in the coming months. The large supply of new flats in the October BTO exercise could draw some buyers away from the resale market, potentially leading to further declines in volume. However, the impact of the cooling measures remains to be seen, and it is possible that they may help to stabilize the market and prevent further price increases.
In conclusion, the 14.9% month-on-month decrease in HDB resale volume in September highlights the challenges faced by the HDB resale market. The introduction of cooling measures, the upcoming BTO exercise, and the reduced supply of flats available for resale have all contributed to this decline. As the market evolves, it will be important to monitor the impact of these factors on both HDB upgraders and private property owners.
Several factors contributed to the decrease in HDB resale volume. The introduction of cooling measures in August, including the reduction of the loan-to-value limit for HDB loans, may have discouraged some potential buyers from entering the market. Additionally, the upcoming BTO exercise in October could have drawn some buyers' attention away from the resale market. The reduced supply of flats available for resale, due to fewer flats reaching their minimum occupation period (MOP), further exacerbated the situation.
The decline in HDB resale volume has had an impact on the average resale price of HDB flats. Despite the drop in volume, the average resale price climbed by 1.2% month-on-month in September, reaching nearly $628,549. This increase in price, despite the decrease in volume, suggests that demand for HDB resale flats remains strong.
The decrease in HDB resale volume may have implications for HDB upgraders and private property owners. HDB upgraders may face increased competition for available flats, driving up prices and making it more difficult for them to find suitable replacement homes. Private property owners may also be affected, as some upgraders may default to the HDB market, driving transactions and prices up.
The upcoming BTO launches and cooling measures may influence the HDB resale market in the coming months. The large supply of new flats in the October BTO exercise could draw some buyers away from the resale market, potentially leading to further declines in volume. However, the impact of the cooling measures remains to be seen, and it is possible that they may help to stabilize the market and prevent further price increases.
In conclusion, the 14.9% month-on-month decrease in HDB resale volume in September highlights the challenges faced by the HDB resale market. The introduction of cooling measures, the upcoming BTO exercise, and the reduced supply of flats available for resale have all contributed to this decline. As the market evolves, it will be important to monitor the impact of these factors on both HDB upgraders and private property owners.