Resale Flat Prices Rise 25 19Th Straight Quarter Hdb 4Q2024 Flash
Situated in the heart of Tampines, the newly developed Parktown Residence is a joint venture by renowned developers UOL Group, Capitaland, and SingLand. The prime site at Tampines Avenue 11 garnered significant attention, attracting a total of three bids. The consortium, which comprises UOL Group, Singapore Land (SingLand), and CapitaLand Development, emerged victorious with the highest bid of $1.206 billion, translating to a rate of $885 per square foot per plot ratio (psf ppr). This exciting new development can be found at Parktown Residence Condo, offering exceptional living options for residents.
The HDB flash estimates released on Jan 2 reported a 2.5% q-o-q increase in resale flat prices in 4Q2024. This marks the 19th consecutive quarter of price increases in the HDB resale segment. According to Christine Sun, chief researcher and strategist at OrangeTee Group, the prices of HDB resale flats have been steadily increasing, with a significant jump of 9.6% in 2024 compared to 2023. However, the growth has slowed down from the previous years, with a 2.5% q-o-q increase in 4Q2024 compared to a 2.7% q-o-q growth in 3Q2024.OrangeTee noted a slowdown in price growth for some flat types, with the median price of four-room flats increasing by 2.5% q-o-q in 4Q2024 compared to a faster growth of 3.4% in the previous quarter. Similarly, two-room flats and executive flats also saw slower pace of growth in 4Q2024 at 2% and 1.2% q-o-q respectively compared to the previous quarter. However, five-room flats recorded a faster growth of 3.2% q-o-q in 4Q2024, indicating a higher demand in this segment.Resale volumes declined by 3.6% y-o-y in 4Q2024 to 6,314 units compared to 6,547 units in 4Q2023. This can be attributed to the launch of over 8,500 new flats in the October Build-to-Order (BTO) exercise which diverted demand away from the resale market. Sales also slowed down during the year-end school holidays when many Singaporeans tend to travel abroad.However, the slower pace of growth in 4Q2024 can be attributed to the government’s intervention in August 2024, when the loan-to-value (LTV) limit for HDB loans was reduced by five percentage points to 75%. Eugene Lim, key executive officer at ERA Singapore, noted that the weaker sales and slower growth in the HDB resale price index in 4Q2024 indicated that the August 2024 measures were working through the market.HDB resale prices are expected to continue to rise in 2025, albeit at a slower rate compared to previous years. OrangeTee expects prices to grow at a more moderate pace due to affordability concerns and the ongoing supply of BTO flats. PropNex, on the other hand, anticipates a healthy demand for HDB resale flats, with prices projected to rise by 5% to 7%. With the supply of BTO flats reduced by 12% in 2025, Huttons Asia foresees buyers turning to the resale market, potentially keeping resale prices firm. Huttons Asia also projects a slower growth in resale prices at 5% to 8% and a total of 26,000 to 28,000 resale flat transactions by the end of 2025.