The HDB resale market in Singapore saw a 0.9% increase in resale flat prices for November 2024, continuing its upward trend with a year-on-year price growth of 10.4%. Despite this, transaction volumes fell by 9.6% month-on-month and 8.7% year-on-year, marking the fourth consecutive month of declining sales, according to flash data from SRX and 99.co.
Resale prices for mature estates grew at a faster rate of 1%, while non-mature estates recorded a modest increase of 0.2%. On a year-to-year basis, mature estates saw a 9.8% price growth, slightly higher than the 9.7% recorded for non-mature estates. Notably, three-room flats experienced the fastest price growth among flat types, increasing by 1.3% month-on-month.
While the seasonal slowdown and cooling measures contributed to reduced transaction volumes, some demand persisted due to the appeal of mature estates, which offer central locations and established amenities. The ongoing popularity of mature estate flats, free from restrictions tied to the Plus and Prime housing schemes, helped buoy demand in this segment.
However, the million-dollar resale flat segment saw a decline, with only 87 such transactions in November compared to 103 in October. Notable sales include a $1.55 million five-room flat in Queenstown and a $1.05 million five-room flat in Sengkang's Compassvale Drive. Analysts suggest that buyers’ attention may have shifted to private properties amid recent new launches and declining interest rates.
Summary: Key Highlights
- Resale Price Growth: HDB resale prices increased by 0.9% in November, marking a year-on-year growth of 10.4%.
- Volume Decline: Transactions dropped by 9.6% month-on-month and 8.7% year-on-year.
- Strong Demand in Mature Estates: Prices in mature estates rose by 1%, compared to 0.2% in non-mature estates.
- Three-Room Flats Lead: Prices for three-room flats saw the highest month-on-month increase at 1.3%.
- Million-Dollar Transactions Dip: Only 87 million-dollar resale flats sold in November, down from 103 in October.
- Limited Flat Supply: Demand remains steady for prime flats and larger homes without BTO wait times.
- Forecast for 2024: HDB resale volume is projected at 29,000–30,000 units, with an 8–10% price increase expected.
Interpretation and Outlook
The data signals a clear dichotomy: While prices continue to climb, volumes are softening due to macroeconomic factors, seasonal shifts, and cooling measures. Mature estates remain a stronghold for demand, driven by their accessibility and established amenities. Buyers seeking convenience and centrality are drawn to these areas, especially as new cooling measures tighten the affordability gap for younger buyers.
The decline in million-dollar flat transactions hints at some market saturation for luxury resale flats, as more buyers gravitate towards private homes amidst attractive launches and lower interest rates. However, flats in prime locations and those with family-friendly layouts are expected to remain resilient in demand, making them valuable assets for both homeowners and investors.
Call to Action
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