Housing
HDB resale prices Up 2.7% in Q3 amid tight supply and strong demand
Prices of HDB resale flats increased by 2.7% from July to September 2024, exceeding the 2.3% growth of the previous quarter. Data released on 25 October revealed that 8,142 resale flats changed hands, a 10.7% rise from the last quarter. HDB attributed this to strong demand and supply tightness, with fewer new flats meeting the minimum occupation period this year.
SINGAPORE: In the resale market, prices of Housing and Development Board (HDB) resale flats rose by 2.7 per cent from July to September 2024, outpacing the 2.3 per cent growth recorded in the previous quarter.
According to data released by HDB on 25 October, a total of 8,142 HDB resale flats changed hands during this period, representing a 10.7 per cent increase from 7,352 units in the preceding quarter.
HDB attributed the rise in both resale prices and transaction volumes to strong, broad-based demand coupled with supply tightness in the market.
This tightness is expected as fewer new flats are set to meet the minimum occupation period in 2024 compared to the previous year.
HDB reiterated its position, emphasising that the “vast majority” of resale flat transactions in the third quarter were sold for considerably less than S$1 million, while those priced at S$1 million and above remained a minor segment of total transactions.
HDB noted that the latest quarterly figures largely reflect market conditions prior to the cooling measures implemented on 20 August 2024, which reduced the loan-to-value limit for HDB loans from 80 per cent to 75 per cent.
“The Government will continue to monitor the property market closely and adjust its policies as necessary to promote a stable and sustainable property market,” HDB stated.
It also advised households to exercise financial prudence when purchasing flats, as the property market moves in cycles, warning that “those who buy high will be hit harder when prices eventually come down.”
Looking ahead, HDB plans to offer more than 5,500 Sale of Balance Flats (SBF) in February 2025, marking the largest exercise of its kind to date.
Approximately 40 per cent of these units will be completed, with the remainder expected to be progressively finished between 2025 and 2028.
In February, around 5,000 Build-To-Order (BTO) flats will also be launched in Kallang/Whampoa, Queenstown, Woodlands, and Yishun. Together, the BTO and SBF offerings will total over 10,000 new flats available for sale.
The SBF launches provide applicants an opportunity to apply for balance flats from earlier BTO sale exercises, which are usually already under construction, nearing completion, or completed.
It was previously announced that SBF exercises would now occur only once a year, reduced from the previous twice-yearly schedule.
HDB has advised prospective home seekers to apply for an HDB Flat Eligibility letter by 15 December to participate in the upcoming sales exercise.
The Housing Board remains on track to launch 100,000 BTO flats between 2021 and 2025, having released 19,637 flats for sale in 2024 alone.
To meet the 100,000-flat target, approximately 17,300 flats must be rolled out in 2025.
