HDB resale market ‘may come under pressure’ in 4Q23: expert

South Africa News News

\u003Cp\u003E\u003Cstrong\u003EIn 3Q23, resale volume dipped 19.7% MoM and 23.3% YoY.\u003C/strong\u003E\u003C/p\u003E\n\u003Cp\u003EThe HDB resale market will continue to see slower activity in 4Q23, according to several real estate experts.\u003C/p\u003E\n\u003Cp\u003EOrangeTee, PropNex, and Huttons all pointed to the upcoming BTO sales launch as a factor which will affect activity in the HDB resale market in the next quarter. \u003C/p\u003E\n\u003Cp\u003E“The resale market may come under pressure in the fourth quarter of 2023. Around 13,000 new flats will be put up for sale from two BTO sales launches in October and December. Many BTO flats are well-located, in proximity to an MRT station or surrounded by ample amenities. As a result, we expect more buyers to be diverted from the secondary market,” OrangeTee said.\u003C/p\u003E\n\u003Cp\u003EPropNex echoed this, adding that the BTO sales launch already affected transactions in 3Q23.\u003C/p\u003E\n\u003Cp\u003E“We think the decline in the resale market activity could be partially due to the Ghost month which straddled August and September, as well as the HDB’s build-to-order (BTO) exercise, which was postponed from August to 4 October,” PropNex said.\u003C/p\u003E\n\u003Cp\u003E“Some prospective buyers may have decided to wait for the BTO launch, given the desirable locations offered, including in Kallang Whampoa and Queenstown,” PropNex added.\u003C/p\u003E\n\u003Cp\u003EIn 3Q23, resale volume dipped 19.7% MoM and 23.3% YoY.\u003C/p\u003E\n\u003Cp\u003E“Some buyers may have held back the purchase of a resale flat to see if there are BTO flats with a shorter completion time or non-PLH flats in mature estates,” commented Huttons.\u003C/p\u003E\n\u003Cp\u003EPropNex added that a “mismatch in price expectations between sellers and buyers could also have slowed transactions” during the period.\u003Cbr /\u003E\n \u003C/p\u003E