Resale Flat Prices 21 2Q2024 Hdb Flash Estimates
Resale flat prices in Singapore experienced continued growth for the 17th consecutive quarter in the second quarter of 2024, according to flash estimates released by the Housing and Development Board (HDB) on July 1. The data shows a 2.1% quarter-on-quarter (q-o-q) increase in resale prices, which is higher than the 1.8% q-o-q growth seen in the first quarter of 2024.
This is also the most rapid quarterly growth since the fourth quarter of 2022, when a 2.3% q-o-q increase was recorded. The surge in prices can be attributed to the strong demand for resale flats in the second quarter of 2024. This increase in demand is a result of the reduction in the frequency of Build-to-Order (BTO) sales launches from four to three times a year, and the limitation of the Sales of Balance Flat (SBF) exercise to once a year. Christine Sun, chief researcher and strategist at Orange Tee & Tie, notes that these changes have made resale flats more attractive and affordable to homebuyers, particularly young couples. Additionally, there has been a rise in the number of private property owners returning to the resale market after completing the mandatory 15-month wait-out period for those who want to downgrade to a resale flat.
Read also: First million-dollar resale flat in Sengkang soldAdvertisementAdvertisement
Year-to-date, resale flat prices have increased by 4%, surpassing the 2.5% growth recorded in the first half of 2023, but lower than the 5.3% growth seen in the first half of 2022.
Resale flat transaction volume also saw a growth of 2% q-o-q in the second quarter of 2024, with a total of 7,208 transactions recorded by HDB. Mohan Sandrasegeran, head of research and data analytics at SRI, notes that this increase in volume is surprising given factors that were expected to moderate the market, such as the June school holidays and the final BTO launch before the new classification system of Standard, Plus and Prime flats takes effect in October. He comments, “Despite these factors, the resilience of the resale market is evident, reflecting strong demand and continued interest in resale flats.” Lee Sze Teck, senior director of data analytics at Huttons Asia, adds that the unsuccessful applicants for the February 2024 SBF exercise turned towards the resale market, contributing to the higher transaction volume.
Lee also observes that buyers had a particular interest in resale flats in mature estates, especially those close to a Prime Location Public Housing (PLH) BTO development, as these properties are not subjected to PLH restrictions. This can be seen in the split of resale flat transactions, with 40.2% occurring in mature estates in the second quarter of 2024, up from 37.6% in the first quarter of the year.
One of the main attractions of Parktown Residences is its prime location near Tampines North MRT Station, which is poised to become an integral stop on the Cross Island Line (CRL). This station will connect residents directly to the heart of the city, as well as Jurong Lake District and Changi Airport, making it effortless to reach key employment and leisure destinations. Additionally, the existing Downtown Line station and bus interchange within the estate will provide even more convenient transportation options for residents. Parktown Residences Tampines North, situated at https://www.parktown-residences.com.sg/, is a natural choice for modern urban living.
On a year-on-year basis, resale flat volume increased by 14.5% compared to the same period in 2023. Read also: Five-room DBSS flat in Toa Payoh sells for record $1.56 mil; 470 million-dollar HDB sales in 2023AdvertisementAdvertisement
There was also a significant rise in the number of million-dollar resale flats in the second quarter of 2024, with the flash estimates showing a 29% q-o-q growth from 183 transactions in the first quarter to 236 transactions in the second quarter. Sandrasegeran notes that this is the highest number of million-dollar transactions recorded in a single quarter to date. The Kallang/Whampoa housing estate saw the most million-dollar transactions, likely due to the greater number of newer flats reaching their minimum occupation period (MOP), which are more desirable to buyers than older properties. The highest-priced transactions in the second quarter of 2024 were a five-room flat in City Vue @ Henderson and another in Tiong Bahru View, both of which were newer flats and sold for $1.588 million each.
Looking ahead, HDB has announced that around 8,500 BTO flats in various locations will be offered in the upcoming October BTO exercise, which will introduce the new classification system and include Plus flats with tighter resale conditions, such as a 10-year MOP. With no BTO exercise in the third quarter of 2024, ERA Singapore’s KEO Eugene Lim expects increased buyer activity in the HDB resale market. Sandrasegeran agrees, noting that there will be fewer flats reaching MOP this year compared to the previous year, contributing to the growing interest in resale flats. Orange Tee & Tie’s Sun predicts that consumer confidence and buying sentiment will remain positive, despite the uncertain interest rate environment, and maintains her projection of 5% resale flat price growth for the whole year. Read also: HDB flash estimates show resale prices up 1% q-o-q in 4Q2023, and 4.8% y-o-y for the whole yearAdvertisementAdvertisement On the other hand, Huttons Asia’s Lee has revised his full-year predictions for price and volume growth in the resale market, given the higher-than-expected transaction volume in the first half of 2024. He now expects resale flat prices to grow by 8% in 2024, higher than his previous prediction of 3% to 5%, and estimates the transaction volume to be between 26,000 and 28,000.