Evolving HDB Resale Landscape in 2024

Evolving HDB Resale Landscape in 2024

The HDB resale market in Singapore maintained its upward trajectory in the last quarter of 2023, though with a moderated growth of 1%, signaling a shift in the property landscape. This follows a series of cooling measures implemented in September 2022, tempering the robust price growth observed in previous years.

  • Slower Growth Trend:

    • Q4 2023 witnessed a 1% increase in HDB resale prices, a deceleration from 1.3% in Q3.
    • The full-year increase of 4.8% contrasts sharply with the double-digit growth seen in 2021 and 2022.
  • Factors Influencing Resale Dynamics:

    • Cooling measures introduced in September 2022 have recalibrated market dynamics.
    • The impact of the measures is evident in the slower quarterly growth, indicative of a more sustainable trend.
    • Resale prices show muted growth across flat types, with four-room flats leading at a 0.7% rise.
  • Million-Dollar Flats and Shifting Demand:

    • A surge in flats transacted for at least S$1 million during Q4, highlighting an evolving buyer profile.
    • Demand for these "million-dollar" flats is driven by first-time buyers and upgraders seeking spacious homes.
  • Supply Dynamics and Resale Volume:

    • Resale volume decreased by 2.3% in Q4, attributed to the rescheduling of BTO flat launches.
    • Overall supply of resale flats increased, driven by owners moving into new homes and putting their flats up for sale.
  • Implications of Policy Changes:

    • The reclassification of BTO flats from the second half of 2024 may influence buyer behavior, with some opting for resale flats before the changes take effect.
    • Resale flats in mature estates exhibit resilient demand, while non-mature estates experience increased supply.
  • Market Projections and Call to Action:

    • ERA projects resale transactions to reach between 26,000 and 27,000 units by end-2024.
    • OrangeTee & Tie estimates a potential 3% to 5% rise in resale prices in 2024, reflecting continued market stability.
    • Stay informed and seize opportunities in this evolving market. Reach out to our real estate experts for personalized insights.

Source: Business Times

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