2024 Q1 HDB resale prices up 1.7%
The total number of 6,928 HDB flats that were resold changed hands in the first quarter of 2024. That’s an increase of 5.5 per cent from the same timeframe in 2023, which saw the sale of 6,567 units.
The rise to more first-time buyers choosing to buy flats to resell because of less frequent Build-To-Order (BTO) sales exercises.
Rarely, sales for the first quarter surpass those from the previous quarter. Sales are usually slow in the first quarter due to Chinese New Year celebrations and school holidays.
Housing Board resale prices rose by 1.7 percent during the first three months of 2024. This is a greater pace of growth than last quarter’s 1.1 percent.
This is the 16th consecutive quarter of price increases since the second quarter of 2020, according to estimates of flash released by HDB on April 1.
Overall 2.8 percent price growth lodged over the fourth quarter of 2023 as well as the first quarter of 2024 is same as the overall increase in the second and third quarters of 2023.
HDB the resale market is stabilising as resales increased by 4.9 percent in 2023. This is lower than the 10.4 percent increase that occurred in 2022 and 12.7 percent rise in 2021.
Because of the uncertain economic outlook, and high mortgage rates, it is important that buyers exercise financial caution when purchasing the new house.
Analysts from the property industry noted that the first set of private home owners who have served their 15-month wait-out time after selling their properties have been able to buy HDB resale flats from January 2024.
The wait-out is an interim measure to be put into place in September 2022, to reduce the demand for resales.
This buyer group could have driven stronger demand for larger homes and led to more flats being sold over the million-dollar mark, pushing prices up.
The amount of HDB flats with five rooms or more sold during the first three months of 2024 is 10 percent more than in the preceding quarter.
In the quarter beginning of 2024 there were 185 homes purchased for at least $1,000,000.
This is the largest amount of flats that have a value of a million dollars which were sold on a monthly basis, led by the record-breaking 74 deals in January. But, flats are still in the minority, accounting for approximately 2.7 percent of all transactions during the first quarter.
The total number of 6,928 HDB flats that were resold changed hands in the first quarter of 2024. That’s an increase of 5.5 per cent from the same timeframe in 2023, which saw the sale of 6,567 units.
The rise to more first-time buyers choosing to buy flats to resell because of less frequent Build-To-Order (BTO) sales exercises.
Rarely, sales for the first quarter surpass those from the previous quarter. Sales are usually slow in the first quarter due to Chinese New Year celebrations and school holidays.
In 2024, BTO flats will be sold across three sales exercises, in June, February and October. This is down from the previous four sales per year.
Sale of Balance Flats, an exercise that allows people to apply for flats that were left from the previous BTO sales The event will take place once a year. These launches were previously held twice a year.
The sole launch of 2024 took place in February.
From 2021-2025, the authorities have pledged to launch 100,000 BTO flats. By February 2024, over 67,000 BTO apartments were in operation.
HDB intends to launch approximately 19,600 BTO flats in 2024. In February, it offered more than 4,100 flats across seven BTO projects in Bedok, Queenstown, Choa Chu Kang, Hougang, Punggol and Woodlands.
In June, the company will release about 6,800 BTO flats located in Jurong East, Kallang/Whampoa Queenstown, Tampines, Woodlands and Yishun.
The government has suggested that homeowners submit an application for an HDB flat eligibility letter prior to May 15 in order to be a part of the BTO.
The BTO launch in June may draw demand away from the resale market because flats in affluent places like Tanjong Rhu and Holland Village will be on offer.
This will be the last sale launch before the changes to the classifications of flats into Standard, Plus, or Prime.
Since the exercise in October, BTO units in choicer areas will be classified under the Prime and Plus categories that come with more stringent terms for resales, including a 10-year minimum occupation time and the possibility of a clawback subsidy.
