Singapore’s HDB resale volume beats the hungry ghost month

Sales increased 12.9% and prices rose 13.7% in August.

Singapore’s HDB resale flats saw strong demand even amidst the infamous hungry ghost month in August. According to OrangeTee, sales volume rose 3.2 per cent m-o-m and 12.9 per cent y-o-y. 

“Demand for resale flats strengthened further as more couples turned to the resale market after it was announced last month that more BTO projects could be facing construction delays while others may see possible holds-up since some main contractors were unable to continue operation due to financial difficulties. Some of the construction firms that will be shut down include Geathearth Corp and Greatearth Construction.”

Here’s more from OrangeTee: 

Some of the affected buyers may have chosen to pay slightly more for resale flats, even if the units are older or are situated in a slightly less ideal location since resale flats are already completed. With a completed home, they have more certainty and can proceed with their wedding or family plannings. Demand may also be spurred by more HDB flat owners upgrading to bigger flats or families downgrading from private properties. 

As the strong demand continues to outstrip supply, prices rose a 14th straight month in August, increasing by 1.1 per cent m-o-m and 13.7 per cent. Prices rose at a faster pace when compared to July when prices rose 0.5 per cent m-o-m then, and now resale prices are poised to hit a new high next month since prices are just 0.1 per cent below the peak in April 2013. 

Price gains have been observed across all room types and for both mature and non-mature estates. Therefore the price increase is broad-based across the whole housing market, indicating that even with prices climbing in many locations, buyers were willing to match the asking prices. Perhaps the buyers were mindful that with more buyers than sellers in the market now, prices may rise further in the coming months. Therefore, they are willing to match the asking prices to secure a unit quickly.