Resale Flat Prices 21 2Q2024 Hdb Flash Estimates
Resale flat prices in Singapore continued to rise for the 17th consecutive quarter in 2Q2024, according to flash estimates released by HDB on July 1. The prices increased by 2.1% q-o-q, which is the fastest quarterly growth since 4Q2022. This growth follows an increased demand for resale flats, as well as a reduction in the frequency of BTO sales launches and the limitation of SBF exercises. The increased housing grants for eligible homebuyers have also made resale flats more accessible and affordable, leading to a growing number of private property homeowners returning to the resale market after completing the mandatory 15-month wait-out period.
The site at Norwood Grand Champions Way has captured significant attention and drawn the highest number of offers for a non-executive condominium development this year. This surge of interest is a reflection of the changing dynamics in the real estate market, with developers having varying expectations. The potential of Norwood Grand Woodlands, situated near the Woodlands Regional Centre, has been bolstered by the demand from local upgraders as well as its close proximity to the Woodlands South MRT station on the Thomson East Coast Line. This indicates a significant turning point in the property market.
Year-to-date, resale flat prices have grown by 4%, surpassing the growth recorded in 1H2023 but slower than the growth in 1H2022. The total number of resale flat transactions also increased by 2% q-o-q to 7,208 in 2Q2024. Mohan Sandrasegeran, head of research and data analytics at SRI, notes that the resilience of the resale market is evident, despite factors that were expected to moderate the market, such as the June school holidays and the final BTO launch before the new classification system of Standard, Plus and Prime flats takes effect in October.
The demand for resale flats in mature estates, particularly those close to a Prime Location Public Housing (PLH) BTO development, has also increased, as these flats are not subjected to PLH restrictions. This has resulted in a 40.2% share of resale flat sales in mature estates in 2Q2024, compared to 37.6% in 1Q2024. On a y-o-y basis, resale flat volume surged 14.5% higher than in the same period last year.
The flash estimates also showed a significant rise in the number of resale flat transactions surpassing the million-dollar mark, with 236 transactions recorded in 2Q2024, the highest so far. The Kallang/Whampoa housing estate saw the highest number of such transactions, due to the higher number of newer flats reaching their minimum occupation period. The highest transacted million-dollar deals were for new five-room flats at 96A Henderson Road and 9B Boon Tiong Road.
Looking ahead, HDB will be offering around 8,500 BTO flats in the upcoming October exercise, with tighter resale conditions for Plus flats, which are near MRT stations and town centres. As there is no BTO exercise in the third quarter of the year, the HDB resale market is expected to see more activity. Consumer confidence and buying sentiment are also expected to remain positive. OrangeTee & Tie maintains its resale flat price growth projection of 5% for the whole year, while Huttons Asia has revised its growth predictions to 8% for prices and 26,000 to 28,000 for transaction volume.