The recent flash estimates released by HDB shed light on a dynamic and ever-evolving resale market. As a real estate professional, I’ve summarized key points, answered common questions, and provided insights into what these trends mean for buyers, sellers, and investors.
Q&A
Q: How has the HDB resale market performed in 4Q2024?
A: In 4Q2024, resale flat prices rose by 2.5% quarter-on-quarter, marking the 19th consecutive quarter of growth. However, the pace of growth has slowed slightly compared to the previous quarter, which saw a 2.7% increase. For the full year 2024, resale prices grew by an impressive 9.6%, double the growth recorded in 2023.
Q: What factors contributed to the slower growth in 4Q2024?
A: The moderation in price growth can be attributed to several factors:
- Increased BTO Supply: The October BTO launch of over 8,500 flats with attractive features diverted some demand away from the resale market.
- Government Cooling Measures: Adjustments such as the reduced loan-to-value (LTV) limit for HDB loans have tempered demand.
- Seasonal Trends: The year-end school holidays led to fewer house viewings and sales activities.
Q: Are million-dollar flat transactions still on the rise?
A: While there was a slight dip in 4Q2024, with 283 million-dollar flats transacted (down from 331 in 3Q2024), the total number of such transactions in 2024 reached a record high of 1,033 units—more than double the figure recorded in 2023. Notably, Toa Payoh town led the way, with many high-value transactions occurring in Bidadari’s Alkaff Vista.
Q: What is the outlook for the HDB resale market in 2025?
A: Experts anticipate a more measured pace of growth for resale prices, with projections of a 3% to 7% increase for the year. Resale demand is expected to remain steady, supported by:
- Limited supply of flats reaching their Minimum Occupation Period (MOP).
- Interest from buyers unable to secure BTO flats or with more urgent housing needs.
- Potentially lower interest rates, which could increase buyers’ purchasing power.
Q: What should buyers and sellers consider in light of these trends?
A:
- For Buyers: Consider entering the resale market if you have pressing housing needs, especially as prices are expected to continue rising, albeit at a slower pace. Look out for opportunities in high-demand areas.
- For Sellers: The market remains strong, particularly for well-located flats and larger unit types like five-room and executive flats. If you’re considering selling, this is a favorable time to do so.
Commentary: What the 4Q2024 Trends Mean for the Market
The HDB resale market continues to demonstrate resilience and adaptability in the face of shifting dynamics. The moderation in price growth is not a sign of weakness but rather a healthy stabilization following years of rapid appreciation. Government measures, coupled with increased BTO supply, have created a more balanced market that benefits both buyers and sellers.
Key takeaways include the enduring appeal of million-dollar flats in central locations and the increasing importance of timing when making property decisions. Buyers must recognize value quickly, as well-priced units in desirable locations often get snapped up. Sellers, on the other hand, can capitalize on strong local demand by pricing their units competitively.
Summary Highlights
- HDB resale prices grew by 2.5% in 4Q2024, marking the 19th consecutive quarter of growth but at a slower pace than before.
- Annual growth of 9.6% in 2024 doubled the growth seen in 2023 but remained slower than in 2021 and 2022.
- Million-dollar flat transactions hit a record high of 1,033 units in 2024, despite a slight decline in 4Q2024.
- Resale volume declined by 3.6% y-o-y in 4Q2024 due to increased BTO supply, cooling measures, and seasonal factors.
- 2025 Outlook: Resale prices are expected to grow at a slower pace (3%–7%), with demand underpinned by limited MOP flats, affordability concerns, and potential lower interest rates.
Call to Action
As the market evolves, it’s crucial to stay informed and make timely decisions. Whether you’re a buyer, seller, or investor, let’s discuss how to navigate the HDB resale market to achieve your property goals. Reach out to me today for personalized insights and updates. Together, we can identify the best opportunities in this dynamic market.