HDB resale prices rose 2.1% in Q2 amid strong demand and supply constraints

SINGAPORE: Housing Board (HDB) resale prices rose by 2.1 per cent in the second quarter of 2024, up from 1.8 per cent growth in the previous quarter.

This marks the 17th consecutive quarter of rising prices, starting from the second quarter of 2020, according to figures released by HDB in their flash estimates on July 1.

The Straits Times reported that in the second quarter of 2024, 7,208 HDB resale flats were sold, marking a 14.5 per cent increase from the same period in 2023, when 6,297 units were sold.

HDB attributes this rise in resale prices and volume to strong demand across the market. The increase in demand, coupled with “some supply tightness” in the market, has pushed prices higher.

HDB noted that fewer flats reached their minimum occupation period (MOP) in 2024 compared to 2023, contributing to the supply constraints.

Given the elevated mortgage rates, HDB advised households to exercise financial prudence when purchasing flats.

They emphasised the importance of ensuring buyers can service their mortgages over the long term.

Although the overall economic conditions are stable, global uncertainties due to geopolitical issues could impact the market.

According to HDB, the Government is closely monitoring the property market and will adjust its policies as necessary to maintain stability and sustainability.

HDB plans to launch about 19,600 Build-To-Order (BTO) flats to meet the strong demand in 2024.

This follows the June offering of over 6,900 flats across eight BTO projects in areas such as Jurong East, Kallang/Whampoa, Queenstown, Tampines, Woodlands, and Yishun.

HDB will release about 8,500 flats across 14 BTO projects in Ang Mo Kio, Bedok, Bukit Batok, Geylang, Jurong West, Kallang/Whampoa, Pasir Ris, Sengkang, and Woodlands in October.

These flats will be categorised as Prime, Plus, or Standard based on their location.

Prime and Plus flats, closer to amenities like MRT stations and town centres, will have stricter resale conditions, such as a 10-year MOP and a subsidy clawback.

Standard flats, which comprise most of public housing, will have a five-year MOP and no major restrictions on resale buyers.

HDB advised homebuyers to get an HDB Flat Eligibility letter by Sept 15 to participate in the next BTO exercise. HDB confirmed it is on track to launch 100,000 BTO flats between 2021 and 2025. /TISG

Read also:  HDB resale prices up by 1.8% in 1Q 2024

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