Resale prices for Housing and Development Board (HDB) flats in Singapore continued their upward trend in the fourth quarter of 2024, albeit at a slightly slower pace.
According to the latest data, prices rose by 2.6%, a minor decrease from the 2.7% growth seen in the previous quarter. This marks the 19th consecutive quarter of price increases since Q1 2020.
The overall price growth for 2024 was 9.7%, surpassing the 4.9% rise in 2023 but falling short of the 10.4% and 12.7% increases in 2022 and 2021, respectively. The recent Build-To-Order (BTO) exercise, which launched over 8,500 flats in October, likely influenced the market, as many buyers, particularly first-time homeowners, were attracted to new Prime and Plus flats in desirable locations. This shift in demand contributed to the slower growth in resale prices.
Despite the slower pace, HDB resale prices are on track to achieve their longest growth streak in 2025. The cumulative price increase since 2020 stands at 50.3%, averaging 2.6% per quarter. However, this growth is modest compared to the 294.4% surge over 20 quarters from 1991 to 1996.
The price growth varied across different flat types, with 5-room and one-room flats experiencing faster increases of 2.7% and 7.6%, respectively. In contrast, the growth for 4-room, 3-room, 2-room, and executive flats slowed. Geographically, the Central Area saw the most significant rise at 25.6%, followed by Toa Payoh, Tampines, Bishan, and Bedok.
Resale volume dropped by 21.1% in Q4 2024, with 6,424 units sold, marking the lowest quarterly sales since Q2 2020. The year-end holiday season and the recent BTO launch likely contributed to this decline. However, demand for larger flats remained robust, with a yearly increase of 11.5% in transactions for 5-room and executive flats.
Rental applications also decreased by 5.6% in Q4 2024, as some demand shifted to the private market due to competitive rents. The number of flats reaching their five-year Minimum Occupation Period (MOP) has also declined, reducing available inventory for lease.
Looking ahead, HDB resale prices are expected to continue rising in 2025, albeit at a moderate rate of 4% to 6%, with sales projected between 25,000 and 27,000 units. The government’s plan to launch over 50,000 new flats between 2025 and 2027, along with efforts to reduce BTO waiting times, may further influence the resale market dynamics.
