SG Buildings

SINGAPORE: The price of Housing & Development Board (HDB) resale flats has risen for 16 consecutive quarters, and some in the industry expect it to increase by around five percent this year, 2024.

“Taking various factors into consideration, it is expected that resale prices may rise moderately by up to 5 per cent in 2024. This increase is comparable to, or slightly lower than, the 4.9 per cent growth observed in 2023,” reads real estate company OrangeTee’s HDB Resale Trends Q1 2024.

On April 1, flash estimates released by the HDB showed that the price of resale flats increased by 1.7 percent in the first quarter of 2024. This uptick is higher than the 1.1 per cent price increase in last year’s fourth quarter.

However, HDB noted that the resale market is stabilizing overall, given that resale prices only grew by 4.9 per cent last year. They rose by 12.7 per cent in 2021 and 10.4 per cent in 2022.

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Nevertheless, the demand for HDB resale flats is still strong. OrangeTee noted that HDB resale prices rose faster in the first quarter of the year.

Moreover, the company called an anomaly that HDB resale volume for the first quarter exceeded the previous quarter.

It also said that the number of sales of at least one million dollars reached a new high of 185 transactions during this period, and in January, the most expensive flat was priced at S$1.57 million.

OrangeTee attributed the demand for resale flats to more first-time buyers opting for them rather than waiting for BTO sales launches and added that BTO sales launches are now held three times a year instead of four, as they had previously.

Also, the Sales of Balance Flat (SBF) exercise will be held once a year.

Additionally, more private property owners have finished the 15-month wait-out period implemented in September 2022 for people who wish to downgrade to a resale flat.

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Prices for resale flats rose the most in the following towns: Serangoon (7.9 per cent), Bishan (6.4 per cent), Kallang/ Whampoa (5.7 per cent) and Toa Payoh (5.4 per cent).

The average price of resale flats grew in 19 out of 26 towns in the year’s first quarter. In comparison, prices only saw an uptick in 14 towns in the first quarter of 2023.

However, OrangeTee also noted that “competition in the housing market may increase in the latter half of this year with the launch of the new Plus flats by the government.

Although these flats come with stricter buying and selling restrictions and a longer minimum occupation period of ten years, their good location may attract some first-time buyers.” /TISG

Read also: HDB resale flats up 1.7% for 16th consecutive quarterly increase