Singapore HDB resale prices rise for 16th consecutive quarter in Q1

Prices grew by 1.7% during the quarter.

Singapore HDB resale prices rose at a faster pace, as demand strengthened in the first quarter of this year. Flash estimates released by the Housing Development Board (HDB) reveal that resale prices rose by 1.7 per cent for the 16th consecutive quarter, compared to 1.1 per cent in the previous quarter (Q4 2023). Prices grew by 5.7 per cent compared to the same period last year.

According to OrangeTee, there has been a surge in demand for resale flats as more first-time buyers chose to purchase from the secondary market instead of waiting for the BTO sales launches. HDB modified the frequency of BTO sales launches to three times a year from the previous four, and the Sales of Balance Flat (SBF) exercise will be conducted once a year.

In addition, an increasing number of private property owners have now completed the mandatory 15-month wait-out period implemented in September 2022 for those looking to downgrade to a resale flat. This could have led to a surge in flat demand, particularly larger units.

Here’s more from OrangeTee:

The number of HDB resale flats sold in the first quarter of this year moderately increased. According to HDB flash estimates, the resale volume grew by 5.5 percent from 6,567 units in Q1 2023 (up to 27 March) to 6,928 units in Q1 2024 (up to 27 March).

It is uncommon for sales in the first quarter to exceed those of the previous quarter. Historical transaction records show that Q1 sales were lower than Q4 sales (of the preceding year) from 2010 to 2022. During the first quarter of most years, sales tend to be slow due to the Chinese New Year festivities and March school holidays. However, it appears that there has been an increase in sales this year, possibly driven by more first-time buyers moving into the HDB resale market. 

Outlook

It is expected that the demand from first-time homebuyers and private homeowners who are downsizing from private properties will continue to prop up the prices of HDB resale flats. Moreover, the number of MOP flats will be dropping this year. 

However, competition in the housing market may increase in the latter half of this year with the launch of the new Plus flats by the government. Although these flats come with stricter buying and selling restrictions and a longer minimum occupation period of ten years, their good location may attract some first-time buyers.