Resale Flat Prices 21 2Q2024 Hdb Flash Estimates
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HDB resale flat prices have continued to rise for the 17th consecutive quarter in 2Q2024, according to flash estimates released by HDB on July 1. The prices have seen an increase of 2.1% q-o-q, which is higher than the 1.8% q-o-q growth in the previous quarter. This is also the fastest quarterly growth since 4Q2022, when there was a 2.3% q-o-q increase. This surge in resale flat prices can be attributed to the high demand for such flats in 2Q2024. One of the reasons for this increased demand is the reduction in the frequency of BTO sales launches from four times a year to three times a year, and the limitation of SBF exercise to once a year. This is according to Christine Sun, chief researcher and strategist at Orange Tee & Tie. Additionally, the recently increased housing grants for eligible homebuyers have made resale flats more affordable and accessible, especially for young couples. Sun also notes that there is a growing number of private property homeowners who are returning to the resale market after completing the mandatory 15-month wait-out period for those who want to downgrade to a resale flat.
Resale flat prices have grown by 4% year-to-date, surpassing the 2.5% growth seen in 1H2023, but slower than the 5.3% growth recorded in 1H2022.
There has also been an increase in the resale flat transaction volume, with 7,208 transactions recorded by HDB in 2Q2024. This is 2% higher than the 7,068 transactions in the previous quarter. This is despite factors that were expected to moderate the market, such as the June school holidays and the final BTO launch before the new classification system of Standard, Plus and Prime flats takes effect in October. According to Mohan Sandrasegeran, head of research and data analytics at SRI, this resilience in the resale market reflects strong demand and continued interest in resale flats. Lee Sze Teck, senior director of data analytics at Huttons Asia, also notes that unsuccessful applicants for the February 2024 SBF exercise turned towards the resale market, contributing to the higher volume in 2Q2024.
Buyers have shown a particular interest in resale flats in mature estates, especially those close to a Prime Location Public Housing (PLH) BTO development. This is because these flats are not subject to PLH restrictions. This demand is reflected in the split of transactions, with 40.2% occurring in mature estates in 2Q2024, up from 37.6% in 1Q2024.
Resale flat volume has also seen a surge of 14.5% compared to the same period last year.
The flash estimates also indicate a significant increase in the number of resale flat transactions surpassing the million-dollar mark, with 236 transactions in 2Q2024, up from 183 in 1Q2024. This is the highest number of million-dollar transactions in a single quarter to date, according to Sandrasegeran. The Kallang/Whampoa housing estate saw the highest number of such transactions, likely due to the higher number of newer flats reaching their minimum occupation period (MOP), which is more attractive to buyers than older properties. The highest transacted million-dollar deals were a five-room flat at 96A Henderson Road in City Vue @ Henderson, and a five-room flat at 9B Boon Tiong Road at Tiong Bahru View, both transacted at $1.588 million.
Looking ahead, HDB has announced that around 8,500 BTO flats will be offered in the upcoming October exercise, classified under the new system which introduces Plus flats. These are located in Ang Mo Kio, Bedok, Bukit Batok, Geylang, Jurong West, Kallang/Whampoa, Pasir Ris, Sengkang, and Woodlands. As there is no BTO exercise in the third quarter of the year, Eugene Lim, KEO at ERA Singapore, expects more buyer activity in the HDB resale market. Sandrasegeran adds that fewer flats will reach MOP in 2024 compared to last year, further propelling interest in resale flats. Sun maintains her resale flat price growth projection of 5% for the whole year, while Lee has revised his full-year price and volume growth predictions, estimating a price growth of 8% and a transaction volume between 26,000 and 28,000.