HDB resale prices jump 9.7% in 2024, 1,035 million-dollar flat transactions set new record

SINGAPORE: The prices of Housing and Development Board (HDB) resale flats saw a significant climb of 9.7% in 2024, according to the latest data released by HDB released on 24 January. This follows a steady increase in the resale price index, which rose by 2.6% in the fourth quarter of 2024. This uptick in resale prices in the final quarter was slightly above earlier estimates of a 2.5% increase, announced at the start of January. It represented a slight cooling from the previous quarter’s 2.7% rise but still marked a considerable annual price growth, with a full-year increase of 9.7%. This is a notable jump from the 4.9% rise in 2023, although slightly lower than the 10.4% surge in 2022. The demand for resale flats remained strong throughout 2024, driven by “broad-based demand” across various flat types. However, transaction volumes took a hit, falling by 21.1% in the fourth quarter to 6,424 units, from 8,142 units in the third quarter. On a year-on-year basis, there was a minor 1.9% decrease in transactions. Overall, resale transactions for 2024 totalled 28,986 units, marking an 8.4% rise from the previous year’s total of 26,735 units.

HDB Attributes Continued Rise in Resale Prices to Strong Demand and Tight Supply

According to HDB, the continued rise in resale prices is due to a combination of strong demand and tight supply. HDB said the government also implemented measures to cool the market, including a reduction in the loan-to-value (LTV) limit for HDB housing loans from 80% to 75% in August 2024. This was aimed at encouraging greater prudence among potential buyers and curbing excessive borrowing. “Households are strongly advised to exercise prudence in their property purchases,” HDB said, warning that property prices move in cycles and those who buy at high prices may find themselves financially exposed if the market weakens. Notably, the prices for four-room and five-room flats saw variations depending on location. The highest median price for a four-room flat was recorded in Toa Payoh at S$950,000, while the lowest was in Jurong West at S$521,500. For five-room and executive flats, the highest median resale price was seen in Bishan at S$970,000, with the lowest being S$620,000 in Jurong West.

2024 Sets Record with 1,035 Million-Dollar Flat Transactions

2024 also saw a record number of million-dollar flat transactions, with 1,035 such deals made throughout the year. However, the number of million-dollar transactions dipped slightly in Q4, falling to 285 from 331 units in the preceding quarter. On the rental market front, the number of HDB flats rented out remained relatively stable. As of the end of Q4, 59,043 flats were rented, representing a slight 0.2% decrease from the previous quarter. Meanwhile, HDB approved 8,603 rental cases in Q4, marking a 5.6% decline quarter on quarter. Nevertheless, 2024 saw a total of 36,673 approved rental cases, reflecting a 6.3% drop from the previous year. Regarding rental prices, the highest median rental price for five-room flats was recorded in Queenstown at S$4,500, while the lowest was for two-room flats in Sembawang at S$2,270.

HDB Plans to Launch 19,600 BTO Flats in 2025

Looking ahead, HDB remains focused on addressing supply constraints in the public housing market. In 2025, it plans to launch about 19,600 Build-To-Order (BTO) flats, including 3,800 units with waiting times of less than three years. Among these, 5,000 flats will be offered across five projects in Kallang/Whampoa, Queenstown, Woodlands, and Yishun in February. In addition, HDB will launch more than 5,500 balance flats, making it the largest exercise for balance flats to date. The majority of these will be completed progressively from 2025 to 2028, helping to ease pressure on supply. HDB is also on track to exceed its 100,000-flat target, with approximately 102,300 BTO flats set to be launched between 2021 and 2025. "HDB is committed to provide affordable and accessible housing options to buyers, and will continue to monitor the housing demand closely, making adjustments where necessary," the HDB statement read.