Throughout the year, both resale prices of HDB flats and private residential prices in Singapore increased, driven by new government housing projects and economic stimuli. However, different housing types showed varying performance.

While the growth in resale prices of HDB flats moderated, the growth in private residential prices accelerated. Analysts believe these data points indicate an overall market stabilization, with expectations of further slowing in the market in 2024.

According to data from the Housing and Development Board (HDB), a total of 24,447 HDB units and approximately 9,250 private residential units were launched in 2023 to meet housing demand. Resale prices of HDB flats increased by 1% on a quarter-on-quarter basis, while private residential prices grew by 2.7%.

The overall growth rate of resale HDB flat prices slowed down, with an annual growth rate of 4.8%, half of the previous year's rate. However, the acceleration in the growth of private residential prices resulted in an annual growth rate of 6.7%, slightly lower than the 8.6% recorded the previous year. This indicates that the private residential market is notably more active, with higher growth potential compared to the HDB flat market.

However, these data also reflect the impact of supply constraints on transaction volumes. Due to limited supply, the transaction volume of private residential properties decreased by 27% on a quarter-on-quarter basis in the fourth quarter of 2023, leading to a 15% decline in annual transaction volume. This highlights that insufficient supply is a significant bottleneck issue in a housing market with strong demand.

Analysts point out that the future direction of the market will depend on various factors, including global economic activities, mortgage interest rates, and the credit conditions of homebuying households.

It is anticipated that in 2024, resale prices of HDB flats will stabilize with a growth of 3% to 5%, while private residential prices are expected to increase by 3% to 4%. The government will continue to introduce new housing projects to meet market demand and strive to maintain reasonable price levels.