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HDB resale flat prices rose 9.6% in 2024, nearly doubling 2023’s 4.9% increase

Singapore’s Housing and Development Board (HDB) resale flat prices rose by 9.6% in 2024, nearly doubling 2023’s 4.9% increase, according to flash estimates on 2 January 2025.

Fourth-quarter resale volume, at 6,314 cases, fell 3.6% year-on-year.

HDB attributed the price rise to strong demand and tight supply.

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Singapore’s Housing and Development Board (HDB) resale flat prices rose by 9.6% in 2024, almost doubling the 4.9% increase recorded in 2023, according to HDB’s flash estimates released on 2 January 2025.

The resale price index reached 197.7 in the fourth quarter, a 2.5% increase from the previous quarter.

This quarterly growth was, however, lower than the 2.7% increase seen in the third quarter of 2024.

HDB’s fourth-quarter resale volume fell to 6,314 transactions, a 3.6% decline compared to the 6,547 cases during the same period in 2023.

BTO launches divert demand from resale flats

The sales dip in late 2024 was attributed to HDB’s launch of over 8,500 new flats in October, many in prime locations.

According to Ms Christine Sun, chief researcher at OrangeTee & Tie, the flats’ attractive features, such as proximity to MRT stations, drew buyers away from the resale market.

Additionally, year-end travel reduced housing viewings and sales activity, further contributing to the decline.

Despite this, the overall resale volume in 2024 reached 28,876, an 8% increase from 26,735 in 2023.

HDB noted that demand remained strong, supported by tight supply in the market.

Cooling measures and new flat launches in 2025

In August 2024, the Government reduced the Loan-to-Value limit for HDB housing loans from 80% to 75% to curb rising prices. HDB advised households to purchase prudently, noting the cyclical nature of the property market.

“Households are strongly advised to exercise prudence in their property purchases as the property market moves in cycles and those who buy high will be hit harder if prices weaken,” HDB said.

HDB added that the Government will monitor the property market closely and adjust its policies as necessary to promote a stable and sustainable property market.

Looking ahead, HDB plans to launch approximately 5,000 Build-To-Order (BTO) flats in February 2025, alongside the largest-ever Sale of Balance Flats exercise, offering over 5,500 units.

This will bring the total new flat supply for February 2025 to over 10,000 units.

Private housing prices grew by 3.9% in 2024

Private housing prices grew by 3.9% in 2024, according to flash estimates from the Urban Redevelopment Authority (URA), marking a slowdown from 2023’s 6.8% increase and 2022’s 8.6%.

In the fourth quarter, the private residential property price index rose 2.3% quarter-on-quarter, driven by higher sales and an increase in new unit launches by developers.

Sales transaction volumes in the quarter surged by 25% compared to the previous quarter.

However, the annual sales transaction volume in 2024 dropped by 14% relative to the average from 2021 to 2023, reflecting broader moderation in market activity.

Non-landed property performance

Prices of non-landed properties rose 3.2% in the fourth quarter, up from a 0.1% increase in the previous quarter. Gains were observed across all regions:

  • Core Central Region: Prices increased by 2.4%, reversing a 1.1% decline in the previous quarter.
  • Rest of Central Region: Prices rose by 3.4%, compared to a 0.8% increase earlier.
  • Outside Central Region: Prices also increased by 3.4%, following stagnation in the previous quarter.

The flash estimates are based on transaction prices submitted for stamp duty payment and data on developer sales up to mid-December. URA will release the full real estate statistics for Q4 2024 on 24 January 2025.

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