HDB resale prices rose 9.6% in 2024, with price growth slowing in Q4

SINGAPORE – Prices of Housing Board resale flats rose 9.6 per cent in 2024 – a quicker pace than the 4.9 per cent increase recorded in 2023.

Resale prices have risen continuously on a quarterly basis since the second quarter of 2020.

But price growth slowed in the last three months of 2024, when prices rose 2.5 per cent, lower than the 2.7 per cent growth in the preceding quarter, flash estimates from HDB showed on Jan 2.

Fewer resale flats were sold in the fourth quarter of 2024, with the number falling by 22.5 per cent to an estimated 6,314 units, from 8,142 units in the third quarter.

Property analysts said the demand for homes was diverted to the Build-To-Order (BTO) market in the last three months of 2024, with the launch in October offering more than 8,500 flats in nine towns, including Ang Mo Kio, Kallang/Whampoa, Bedok and Woodlands.

In all, 28,876 resale flats changed hands in 2024 as at Dec 30 – 8 per cent higher than the 26,735 flats in 2023.

Ms Christine Sun, chief researcher and strategist at property firm OrangeTee Group, said the price growth for some flat types slowed from October to December, which contributed to the overall slowdown.

The median price of four-room flats climbed 2.5 per cent in the fourth quarter of 2024, a slower clip compared with the 3.4 per cent growth in the previous quarter, she added. Two-room flats and executive flats showed similar trends.

But prices of five-room flats rose at a faster rate of 3.2 per cent from October to December, up from 1.2 per cent in the previous quarter.

ERA Singapore key executive officer Eugene Lim said the elevated mortgage rates across most of the year and rising prices for private homes led to more flat owners upgrading within the HDB market.

“Such buyers could have a more comfortable budget, allowing them to upgrade to larger, more centrally located homes with longer leases, which in turn helped to boost resale prices,” he added.

Mr Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc, said an estimated 1,035 flats changed hands for at least $1 million in 2024, more than double the 469 million-dollar deals in 2023.

But the number of such deals fell to 285 in the fourth quarter of 2024, from 331 units in the previous quarter.

Mr Mohan said the moderation in the fourth quarter could be attributed to a cautious sentiment among buyers in response to cooling measures implemented in August, which lowered the loan-to-value limit for HDB loans.

“Some buyers might be adopting a more conservative approach, reassessing affordability and the long-term implications of these measures,” he added.

Mr Lee Sze Teck, senior director of data analytics at real estate firm Huttons Asia, noted that most of the million-dollar flats were in estates such as Toa Payoh, Bukit Merah, Kallang/Whampoa and Queenstown.

Toa Payoh recorded the highest number of million-dollar flat transactions in the fourth quarter of 2024 with 55 such deals, as flats in the

Bidadari housing estate hit the resale market

, Mr Lee added.

HDB said the increase in resale prices and volume was driven by strong broad-based demand and tight market supply.

The

loan-to-value limit for HDB loans

was lowered from 80 per cent to 75 per cent in August to cool the market and encourage greater prudence among buyers, it added.

It advised people to be financially prudent in their flat purchases as the property market moves in cycles and “those who buy high will be hit harder if prices weaken”.

“The Government will monitor the property market closely and adjust its policies as necessary to promote a stable and sustainable property market,” it said.

HDB said it launched 21,225 new flats in 2024, comprising 19,637 BTO flats and 1,588 Sale of Balance Flats units.

In February, it will roll out

about 5,000 BTO flats

in Kallang/Whampoa, Queenstown, Woodlands and Yishun.

More than 5,500 balance flats

will also be on offer in the largest exercise for these flats to date.