In the fourth quarter of 2024, HDB resale prices continued to rise, increasing by 2.6%. This marks the 19th consecutive quarter of price growth in the resale market according to data published by HDB on January 24th. The cumulative increase for the whole of 2024 was 9.7%. This yearly increase nearly doubled the 4.9% increase seen in 2023. The most recent quarter’s increase was slightly lower than the 2.7% increase seen in the third quarter of 2024. According to Mohan Sandrasegeran, head of research & data analytics at SRI, the strong growth in prices throughout 2024 can largely be attributed to the limited supply of flats that reached their Minimum Occupation Period (MOP) during the year. Sandrasegeran notes that this shortage of supply has put upward pressure on resale prices, especially for newer flats and larger flat types like five-room and executive units, which cater to growing family needs. The five-room flats saw the highest price growth in the fourth quarter of 2024, increasing by 2.2% to an average price of $754,097. Meanwhile, four-room flats saw a 2.2% increase as well, reaching an average price of $652,544. Of the various types of flats in the HDB resale market, the Central Area saw the highest price increase, growing 25.6% in the fourth quarter, followed by Toa Payoh at 12.1%, Tampines at 6.9%, Bishan at 6.7%, and Bedok at 6.1%. A total of 285 HDB resale flats were sold for $1 million or more in the last three months of 2024, bringing the total number of million-dollar transactions for the year to 1,035. More than 90% of these transactions took place in mature estates. The Kallang/Whampoa estate saw the highest number of million-dollar transactions at 156 units, followed by Toa Payoh at 144 units, and Bukit Merah at 135 units. In the fourth quarter, the transaction volume for the resale market fell by 21.1% compared to the previous quarter, with only 6,424 units sold. According to Lee Sze Teck, senior director of data analytics at Huttons Asia, this decline in transactions can be attributed to seasonal factors, such as the year-end holiday and festive season. He also notes that the lower interest rate environment may have encouraged some buyers to move to the private residential market or the Executive Condominium (EC) market. Additionally, some potential buyers may have opted to apply for a flat in the latest Build-to-Order (BTO) sales exercise, which took place in October. The BTO exercise saw a record 15 projects with 8,573 flats released under the new location-based classification framework, with singles also being allowed to purchase two-room flexi BTO flats in all locations for the first time. However, the overall transaction volume for 2024 increased by 8.4% compared to 2023, with a total of 28,986 units sold. This marks the highest number of yearly resale transactions since 2021 when 31,017 flats were sold. According to transaction data compiled by Huttons Asia, the top five most popular HDB towns among buyers in 2024 were Sengkang, Woodlands, Punggol, Tampines, and Yishun. These estates accounted for around 35.9% of all HDB resales in 2024. Looking ahead, it is expected that 6,976 flats will reach the end of their MOP in 2025, representing a 41.6% decrease in new housing supply entering the secondary public housing market compared to 2024. This is due to the relatively fewer BTO flats completed in 2020 during the pandemic. HDB has announced plans to launch over 25,000 new flats across three BTO sales exercises in 2025, with 19,600 BTO flats and over 5,500 flats under the Sale of Balance Flats (SBF) exercise. The next SBF exercise will take place concurrently with the upcoming BTO sales exercise in February, with 5,000 BTO flats in Kallang/Whampoa, Queenstown, Woodlands, and Yishun being offered. 40% of the 5,500 SBF flats will already be completed. The significant increase in public housing supply aims to meet the growing demand for housing. Sandrasegeran notes that SBF flats are particularly attractive to home seekers because they offer the option of a brand-new, ready-to-move-in flat with a shorter waiting period than the typical BTO process. Additionally, about 3,800 units of the 19,600 BTO flats planned for launch in 2025 will be designated as Shorter Waiting Time (SWT) flats, which offer wait times of less than three years. Sandrasegeran predicts that resale prices in the HDB market for 2025 could increase by 3.5% to 5.5%, with transaction volumes ranging from 26,000 to 27,000. However, Lee has a more optimistic forecast, predicting a rise in prices by 5% to 8% over the course of the year.
Investing in a New Condo Launches in Singapore has become increasingly popular for both local and foreign investors. This is largely due to the country’s strong economy, stable political climate, and high quality of living. With its thriving real estate market, Singapore offers a range of investment opportunities, and condos are particularly attractive for their convenience, amenities, and potential for lucrative returns. In this article, we will delve into the advantages, factors to consider, and necessary steps to take when investing in a condo in Singapore.