SINGAPORE: Resale flat prices increased by 9.6 per cent in 2024, almost doubling the 4.9 per cent increase in 2023, according to the Housing and Development Board (HDB)’s flash estimates on Thursday (Jan 2).
The resale price index, which reflects the general price movements in the resale market, grew to 197.7 in the fourth quarter – an increase of 2.5 per cent from the previous quarter, the flash estimates showed.
This is lower than the 2.7 per cent growth in the third quarter of 2024, said HDB in a press release.
The resale volume in the fourth quarter of 2024 was 6,314, a 3.6 per cent fall from the 6,547 cases recorded in the fourth quarter of 2023.
The sales decline observed in the fourth quarter of 2024 was primarily due to the HDB launching over 8,500 new flats in October, many of which are situated in prime and desirable locations, said Ms Christine Sun, OrangeTee & Tie’s chief researcher and strategist.
“The attractive features of these flats, including scenic views and proximity to MRT stations, diverted demand away from the resale market towards the Build-To-Order (BTO) market,” Ms Sun added.
“Moreover, sales tend to be slower during the year-end because of the school holidays, when many Singaporeans tend to travel abroad. As a result, housing viewings and sales activities typically decrease during this time.”
However, the total resale volume in 2024 was 28,876, an 8 per cent increase from the 26,735 cases recorded in 2023.
“The resale prices in the fourth quarter of 2024 continued to be driven by a strong broad-based demand, as well as some supply tightness in the market,” HDB said.
“The Government had lowered the Loan-to-Value limit for HDB housing loans from 80 per cent to 75 per cent in August 2024 to cool the market and encourage greater prudence among home buyers.”
HDB advised households to exercise prudence in their property purchases as the property market moves in cycles, adding that those who buy high will be hit harder if prices weaken.
It also said that it will monitor the property market closely and adjust its policies when necessary to promote a stable and sustainable property market.
In 2024, HDB launched 21,225 new flats, comprising 19,637 BTO units and 1,588 flats offered under the Sale of Balance Flats (SBF) exercise.
February 2025 will see the launch of around 5,000 BTO flats in Kallang/Whampoa, Queenstown, Woodlands, and Yishun, along with the largest-ever SBF exercise offering more than 5,500 flats across various estates.
This will bring the total number of new flats available in February 2025 to over 10,000.
