HDB resale prices are on track to achieve their longest growth streak by the end of 2025, according to the latest market report from OrangeTee. Following a 2.6% increase in the fourth quarter of 2024, this marks the 19th consecutive quarterly rise since the first quarter of 2020. If current trends continue, prices are expected to rise by 4% to 6% this year, potentially reaching a record 23 consecutive quarters of growth.
The report highlights that whilst the growth streak is significant, the cumulative increase of approximately 58% is modest compared to the 294.4% surge seen from the fourth quarter of 1991 to the fourth quarter of 1996. This difference is attributed to recent cooling measures aimed at curbing rapid price increases.
In the last quarter, prices rose in 20 out of 26 towns, with the Central Area seeing the most substantial increase at 25.6%, followed by Toa Payoh at 12.1%. However, the resale volume is expected to dip slightly in 2025 due to a limited supply of flats reaching their Minimum Occupation Period (MOP) and increased interest in Build-To-Order (BTO) flats.
Christine Sun, Chief Researcher and Strategist at OrangeTee, noted that the number of flats reaching MOP is projected to fall to 6,974 units in 2025, the lowest in 11 years. This scarcity, coupled with efforts to reduce BTO waiting times, may divert demand from the resale market, potentially affecting sales volumes, which are expected to range between 25,000 and 27,000 units this year.
Overall, the HDB resale market remains robust, with sustained demand and price growth expected to continue, barring any new cooling measures or unforeseen economic challenges.
This news story was carefully selected and published by a human editor, though the content itself was AI-generated. While we strive for accuracy, mistakes can happen. If you spot an error, please report it at contact@newsflashasia.com.
