SINGAPORE: HDB resale prices rose by 2.3% in the second quarter of 2024, according to data from the Housing Development Board (HDB). This continues a trend of rising prices for 17 consecutive quarters, with a faster growth rate than the 1.8% increase seen in the first quarter. For the first half of the year, resale prices have grown by a total of 4.2%.
Singapore Business Review reported that all types of HDB flats saw their resale prices grow. Prices for 5-room and 3-room flats increased by 2.8%, while 4-room flats went up by 2.5%, and 2-room flats saw a 2.8% rise.
Notably, a record 236 HDB units were resold for at least a million dollars, with 28 of these units fetching over $1.3 million. This surge in high-value transactions has set a new record for the public housing market. Since the fourth quarter of 2021, 112 units have been sold for over $1.3 million.
By volume, 7,352 units were sold in Q2, a 4% increase from the previous quarter. For the first half of 2024, 14,420 resale flats were traded, up from 13,493 units in the same period last year.
Christine Sun, chief researcher and strategist for OrangeTee Group noted that the demand for larger flats remained robust, with 4,214 transactions for 5-room and executive flats in the first half of 2024, a 9.3% increase compared to H1 2023.
She attributed the strong demand for larger flats to ex-private property owners who have completed the mandatory 15-month wait-out period before purchasing a resale flat. The fear of being priced out of the market has also driven buyers to act quickly, added Sze Teck Lee, senior director of analytics for Huttons Asia.
Mr Lee observed a sense of Fear of Missing Out (FOMO) among buyers in the second quarter of 2024. “After seeing a record number of million-dollar flats and a faster pace of price growth in Q1, buyers feared being priced out of the market and hastened their purchase,” he said.
In the first half of 2024, 419 million-dollar transactions were recorded, putting Singapore on track to double the total number of such sales compared to the whole of 2023. Looking ahead, the outlook for the HDB resale market is positive. Ms Sun noted that the increased housing grants from the government have made resale flats more accessible and affordable, especially for young couples.
Mr Lee added that the faster pace of price growth in earlier quarters might spur quicker buying decisions due to rising anxiety among potential buyers.
“While million-dollar flats and record prices are not the norm, it gives an impression of fast rising prices in the HDB resale market. It may spur more buyers to quickly buy before prices increase further,” he said.
He noted that from now to 2025, some Build-To-Order (BTO) projects in Bidadari and Punggol will be eligible for resale, and it is likely that sellers will aim to sell these flats for a million or more.
OrangeTee Group expects resale prices will rise by up to 8% in 2024, higher than their earlier estimates. In addition, Huttons forecasts that the HDB resale market will see between 26,000 to 28,000 transactions in 2024, with prices increasing by as much as 10% for the year. /TISG
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