HDB Resale Prices Soar by 9.6% in 2024: Insights and Implications
SINGAPORE: In a surprising turn of events, resale flat prices in Singapore surged by 9.6 per cent in 2024, nearly doubling the increase seen in the previous year, according to the Housing and Development Board (HDB)’s flash estimates released on Thursday (Jan 2). This significant uptick in prices has sparked discussions and analysis across the real estate market.
Factors Driving the Surge
The resale price index reached 197.7 in the fourth quarter, marking a 2.5 per cent increase from the previous quarter. Despite this growth, the resale volume in the fourth quarter of 2024 saw a 3.6 per cent decline compared to the same period in 2023. This decline can be attributed to the launch of over 8,500 new flats by HDB in October, many of which offered attractive features like scenic views and proximity to MRT stations. Ms. Christine Sun, OrangeTee & Tie’s chief researcher and strategist, highlighted that these new offerings diverted demand away from the resale market towards the Build-To-Order (BTO) market.
Insights and Expert Analysis
Experts suggest that the strong broad-based demand and supply tightness in the market have continued to drive up resale prices. To cool the market and promote prudence among homebuyers, the government lowered the Loan-to-Value limit for HDB housing loans from 80 per cent to 75 per cent in August 2024. HDB emphasized the cyclical nature of the property market and advised households to be cautious with their property purchases to avoid potential pitfalls if prices weaken.
Looking Ahead: Future Trends and Developments
As the property market evolves, HDB is closely monitoring the situation and remains prepared to adjust its policies to ensure a stable and sustainable property market. In February 2025, over 10,000 new flats will be launched, offering diverse options across various estates, including BTO units and flats under the Sale of Balance Flats (SBF) exercise. This proactive approach aims to meet the evolving needs of Singapore’s housing landscape.
The surge in HDB resale prices, coupled with shifting market dynamics, underscores the importance of informed decision-making for prospective homebuyers and investors. As the real estate sector continues to evolve, staying informed and adapting to changing conditions will be crucial for navigating the property market effectively.
