HDB Resale Market Trends in 3Q 2024 – A Record-Breaking Quarter
The HDB resale market in Singapore continued its upward trajectory in 3Q 2024, characterized by rising prices, increased transaction volumes, and a record number of million-dollar flat sales. This report highlights key insights and trends that shaped the market during this period, reflecting a dynamic landscape driven by demand, policy shifts, and changing buyer preferences.
Soaring Prices Amid Limited Supply
HDB resale prices saw a faster increase of 2.7% in 3Q 2024 compared to 2.3% in 2Q. This surge can be attributed to several factors:
Supply Constraints: A 23% drop in the number of flats meeting the Minimum Occupation Period (MOP) compared to 2023 reduced available options for buyers.
BTO Uncertainty: Longer waiting times for Build-to-Order (BTO) flats and unclear timelines for shorter waiting periods pushed many buyers toward resale flats.
Premium Transactions: A rising number of million-dollar flats, especially in mature estates, signaled a trend of buyers seeking better locations despite higher costs.
Cumulatively, HDB resale prices have climbed an impressive 47.5% since 2Q 2019, with a 6.9% increase in the first nine months of 2024 alone, surpassing the 4.9% growth for the entire year of 2023.
Government Cooling Measures
To address the rapid price escalation, the government introduced another round of cooling measures in August 2024, including:
Lowering the Loan-to-Value (LTV) ratio for HDB loans from 80% to 75%.
This marks the third intervention since the pandemic, following measures in 2021 and 2022 that progressively tightened borrowing limits and introduced wait-out periods for private property owners.
Transactions and Popular Estates
Transaction volumes rose by 10.7% quarter-on-quarter, with 8,142 units sold in 3Q 2024. The most sought-after towns were Sengkang, Punggol, Woodlands, Jurong West, and Tampines, accounting for nearly 35% of total transactions.
Million-Dollar Flats at a Record High
3Q 2024 set a new benchmark with 331 million-dollar resale flats, a 60% increase compared to 2023.
Top Locations: Mature estates like Kallang/Whampoa, Bukit Merah, and Queenstown led the pack in these transactions.
Price Range: Most million-dollar flats sold between $1 million and $1.1 million, but there was a noticeable rise in transactions exceeding $1.3 million.
The demand for these premium units reflects buyers’ willingness to invest in prime locations and larger units, even as stricter policies like the Plus and Prime frameworks add resale restrictions to new flats in choice areas.
Looking Ahead: Market Outlook for 2024
Despite cooling measures, demand for resale flats is expected to remain robust, supported by lower interest rates and a broader range of buyer incentives. Analysts forecast:
A total of 29,000–30,000 resale transactions for 2024.
A price increase of 8%–10% year-on-year.
Over 1,000 million-dollar flats sold, constituting 3%–4% of the market volume.
The market’s resilience underscores the appeal of resale flats amid a challenging economic environment, offering buyers flexibility, immediate availability, and location advantages.
Conclusion
The 3Q 2024 HDB resale market demonstrated strong growth and resilience, driven by a complex interplay of limited supply, high demand, and evolving buyer preferences. As policies adapt to manage affordability, the trajectory of HDB resale prices and volumes will remain a focal point for homeowners and policymakers alike.
Do reach out to Kelvin Lim at 93388999 if you require more information. Have a wonderful day ahead.
Contact Kelvin Lim at 93388999 for more information
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