HDB Resale Prices Surge 9.7% in 2024

SINGAPORE – The Housing and Development Board (HDB) has reported a significant jump in resale flat prices, which soared by 9.7% in 2024. This growth is especially notable compared to the previous year's 4.9%. Analysts predict that this upward trend could continue in 2025 due to persistent demand pressures and a tighter supply of available flats.

The latest data shows that while the overall price increase was substantial, the last quarter of 2024 saw a slowdown in growth, with prices rising 2.6%—a slight dip from 2.7% in the preceding quarter. Sales volume also dipped, with 6,424 units sold in Q4 2024—a 21.1% decrease from 8,142 units in Q3. Even so, the year concluded with 28,986 resale flats changing hands, representing an 8.4% increase from 26,735 in 2023.

Market Analysis and Predictions

This persistent price increase, uninterrupted since Q2 2020, has led many property experts to speculate about future developments. Mr. Mohan Sandrasegeran, head of research at Singapore Realtors Inc, indicated that a declining number of flats reaching their minimum occupation period (MOP)—estimated at 6,974 in 2025, down 41.6% from 11,952 in 2024—will further tighten the market and push prices higher.

The continuity of this growth trajectory is impressive. Ms. Christine Sun, chief researcher at OrangeTee Group, noted that by the end of 2024, prices had marked their 19th consecutive quarter of increases, nearing the record set between 1991 and 1996 when prices rose for 20 straight quarters.

Spotlight on Million-Dollar Transactions

Highlighting the most expensive markets, the report showed that five-room flats in Bishan claimed the title as the priciest, with a median price of $970,000, closely followed by five-room flats in Bukit Merah at $965,000. Throughout the year, a record 1,035 million-dollar transactions took place, although the number slightly dipped to 285 from 331 in the last quarter.

Deep diving into the data, Mr. Lee Sze Teck from Huttons Asia observed that million-dollar transactions represented about 3.6% of total sales and were primarily concentrated in hot markets like Bishan and Queenstown. This indicates a robust demand for high-end flats in strategic locations, further exemplified by the fact that most of these transactions ranged from $1 million to $1.1 million.

Government Intervention and Future Strategies

To instill a sense of caution amidst soaring prices, the HDB reduced the loan-to-value limit on housing loans from 80% to 75% in August. This move aims to cool the market and encourage buyers to make more prudent decisions as property values continue to ride a cyclical wave. The HDB cautioned buyers that purchasing at peak prices could lead to significant financial burdens if values were to decline.

Looking forward, the HDB has ambitious plans to launch approximately 19,600 Build-To-Order (BTO) flats in 2025, including 3,800 units with expected waiting times of under three years. In February, the agency will introduce around 5,000 flats across several key locales, including Kallang/Whampoa and Queenstown, to meet the growing demand.

Conclusion

In conclusion, if you're considering buying or selling HDB flats, now is the time to stay informed and act wisely. The evolving landscape of the Singapore property market could significantly impact your investment strategy. As the HDB navigates these dynamics, potential buyers and sellers should keep a close eye on upcoming developments and government policies that could shape the future of housing in Singapore.