Homebuyers flock to resale market as fewer BTO launches drive HDB resale prices up in April

SINGAPORE: HDB resale prices experienced a significant uptick in April, rising by 0.9% month-on-month (MoM) and 6% year-on-year (YoY), according to data from 99.co and SRX.

Property analysts have attributed this trend to a combination of factors, including a decline in build-to-order (BTO) flat launches, which has encouraged more homebuyers to turn to the secondary market.

Christine Sun, Chief Researcher and Strategist at OrangeTee Group noted that HDB resale prices have been on the rise for seven consecutive months, with increases across all flat types except for five-bedroom flats.

“The higher grants available to first-time buyers have made it more affordable and accessible to purchase a resale flat,” Ms Sun explained.

“Additionally, it seems that the global economy has experienced an upturn, giving prospective homebuyers the confidence to take the plunge and enter the property market,” she added.

The boost in resale activity has been notable, with the volume of resales rising 16% MoM and 9% YoY in April.

Wong Siew Ying, PropNex’s Research and Content Head, indicated that the resurgence in resale transactions has contributed to higher prices.

A significant portion of this activity has been concentrated in non-mature towns, particularly in Woodlands and Jurong West.

Mark Yip, CEO of Huttons, pointed out that unsuccessful applicants from the sole Sale of Balance Flats (SBF) exercise in February could have also fueled the surge in resale market activity, as these buyers chose not to wait until the next BTO launches in 2025.

Mr Yip projected a steady increase in resale transactions in the coming months, estimating HDB resale volume to reach between 26,000 and 28,000 flats, up from previous estimates of 25,000 to 27,000.

He added, “HDB resale flat prices could grow by more than 5% in 2024, a tad higher than the 4.9% increase in 2023.”

This rising trend in HDB resale prices and transactions points to a shift in the market dynamics as homebuyers adapt to a landscape with fewer BTO launches.

As more buyers turn to the resale market, industry analysts will closely monitor the impact on property prices and future market trends.

Read related: April HDB resale price up 6.0% YoY; resale volume increase as BTO launches decrease