SINGAPORE: Record-breaking Sales in HDB Resale Market

According to a report from EdgeProp released on December 24, 2024, the year has marked a significant breakthrough in the Housing and Development Board (HDB) resale flat market, with 2024 setting a record for transactions exceeding S$1 million. Notably, the Tampines estate emerged as the frontrunner, showcasing a staggering increase in sales.

Phenomenal Growth in Tampines

From just two units sold the previous year, Tampines registered an astonishing 21 HDB resale transactions crossing the million-dollar threshold—an eye-popping 950% surge year-on-year. This trend is not just a localized phenomenon; statistics from Huttons Data Analytics indicate that properties sold for S$1 million or more now constitute about 3 to 4 percent of the total market transaction volume.

Overall Market Trends

Between January and November 2024, a total of 931 HDB resale units have changed hands at these elevated prices, significantly up from only 470 in 2023. Interestingly, roughly 60% of this year's transactions fell between S$1 million and S$1.1 million, revealing a strong demand in this price range.

Million-Dollar Club Expansion

Remarkably, all HDB townships have reported at least one million-dollar transaction with the exceptions of three areas: Choa Chu Kang, Jurong West, and Sembawang. Recent years have witnessed other townships like Pasir Ris, Woodlands, Bukit Batok, Marine Parade, Tengah, and Sengkang entering the sought-after 'million-dollar club.' According to Ismail Gafoor, CEO of PropNex, Jurong West is poised to be the next contender to join this elite group.

Affordability Concerns

However, it's important to emphasize that HDB flats priced above S$1 million are still relatively rare. In a bid to address affordability, HDB officials have reiterated that the vast majority of resale flats remain within reach for most buyers. HDB’s Director for Policy and Property, Sia Tze Ming, highlighted that the proportion of transactions exceeding one million dollars remains small, accounting for only 2% of sales in the past 18 months.

Support for First-Time Buyers

'For most home buyers, resale flats remain affordable,' she stated, noting that a substantial 80% of first-time buyers in 2023 were able to manage their mortgage payments through their monthly Central Provident Fund contributions, requiring little to no cash outlay.

Resilience of the HDB Market

The report from EdgeProp reveals a resilience in the HDB market, as 19 towns witnessed an increase in million-dollar transactions this year. Kallang Whampoa notably led the pack with 146 high-value sales, closely followed by Toa Payoh with 124 transactions. Sengkang, traditionally known for more affordable housing, recorded its first sale over S$1 million, totaling four such transactions this year.

Future Outlook

As the Singapore HDB market evolves, it’s clear that while million-dollar flats gain attention, the fundamental structure of the market remains focused on ensuring affordability for the average home buyer. With continued price hikes, the landscape of HDB resale flats will be one to watch in the upcoming years!