HDB resale prices increases 0.6% in Q1 2024
The BTO launch in June may bring buyers away from the resale market because flats in affluent places like Tanjong Rhu and Holland Village will be available.
It will also be the last sales launch before the change of flats to Prime, Plus and Standard flats.
Beginning in October, BTO units in choicer areas will be classified under the categories of Prime and Plus that have stricter requirements for resales including a 10-year minimum occupancy period, as well as a subsidy clawback.
Housing Board resale prices rose by 1.7 percent in the initial three months of 2024. This is a greater pace of growth than the previous quarter’s 1.1 percent.
According to HDB’s flash estimates, this marks the 16th consecutive quarter-long price increase since the 2nd quarter of 2020.
The total increase of 2,8 percent over the first and fourth quarters of 2023 is equal to the total increase of 2,8 percent in the second and third quarters 2023.
HDB the resale market is stabilising and resales prices rose 4.9 per cent in 2023. This is lower than the 10.4 percent increase that occurred in 2022 and 12.7 percent rise in 2021.
With the uncertain economic outlook and the rising mortgage rates, consumers should be cautious with their purchases.
Property analysts observed that the first group of private home owners who have served their 15-month wait-out time after selling their houses are now able to purchase HDB flats that are resold starting January 2024.
The wait-out is a temporary measure which will take effect in September 2022, and will be used to cool down the resale markets.
This may result in a higher demand for larger apartments and more flats sold over one million dollars, pushing prices up.
The amount of HDB flats that have five rooms or more that were sold in the first quarter of 2024 is 10 percent higher than the previous quarter.
The total of 185 flats changed hands at least $1 million in the first quarter of 2024.
The number of million dollar homes that are resold quarterly is highest, with a record-breaking 74 transactions recorded in January. However, these flats are an underrepresented segment, comprising about 2.7 percent of all transactions during the initial quarter.
The total number of 6,928 HDB flats that were resold changed hands during the first quarter of 2024, increasing by 5.5 percent from the same timeframe in 2023 which was when 6,567 flats were sold.
A rise in the number of first-time buyers choosing to buy flats to resell because of less frequent Build-To-Order (BTO) sales exercise.
Rarely do sales for the first quarter outstrip those from the previous quarter. Sales are usually slower in the first quarter because of Chinese New Year celebrations as well as school holidays.
From 2024 onwards, BTO flats will be available across three sales exercises, in June, February and October, down from the previous four annual launches.
Sale of Balance Flats, an exercise that permits people to apply for flats that were left from the previous BTO sales, will be held every year. These launches were previously held every two years.
2024’s launch was the only one to take place in February.
The authorities have pledged to launch 100,000 BTO flats in 2021 through 2025. In February 2024, more than 67,000 BTO apartments were in operation.
HDB plans to launch about 19,600 BTO flats by 2024. In February, HDB offered over 4,100 flats in seven BTO projects located at Bedok, Queenstown and Choa Chu Kang.
It will be launching 6,800 BTO flats by June in Jurong East, as well as other areas, including Queenstown/Tampines Woodlands, Yishun, Kallang/Whampoa.
The government has advised that homeowners apply for an HDB flat eligibility certificate before May 15 in order to take part in the BTO.
The BTO launch in June may bring buyers away from the resale market because flats in affluent places like Tanjong Rhu and Holland Village will be available.
It will also be the last sales launch before the change of flats to Prime, Plus and Standard flats.
Beginning in October, BTO units in choicer areas will be classified under the categories of Prime and Plus that have stricter requirements for resales including a 10-year minimum occupancy period, as well as a subsidy clawback.
