Singapore HDB Resale Market in 2024 and Outlook in 2025

HDB Resale Market Gains Momentum in 2024

The Housing and Development Board (HDB) resale market witnessed a significant surge in activity in 2024, largely driven by evolving policies and market dynamics. Transaction volumes for HDB resale flats are projected to hit approximately 30,000 units in 2024, reflecting a more than 10% increase compared to 2023’s 26,735 transactions. Resale prices have also risen notably, with estimates suggesting a potential increase of up to 10% in 2024—double the 4.9% growth recorded in 2023.

Limited Supply Fuels Demand

On the supply side, HDB launched only 19,637 Build-to-Order (BTO) flats in 2024, a 13.8% reduction compared to the 22,780 flats launched in 2023. Additionally, the sole Sale of Balance Flats (SBF) exercise in 2024 offered 1,588 units, slightly below the 1,667 units available in 2023 from similar exercises and open bookings. Changes to the BTO system, including reducing the number of annual launches to three and extending the waiting time for flat selection, have further driven buyers towards the resale market.

Adding to the supply crunch, the number of flats meeting the Minimum Occupation Period (MOP) in 2024 fell to 11,952, a 23.1% decline from 2023’s 15,549 units. The constrained supply, coupled with robust demand, has driven up resale prices, including a record number of million-dollar transactions.

Record-Breaking Transactions in 2024

The trend of million-dollar HDB resale flats reached new heights in 2024, with an estimated 1,000 such transactions making up 3% to 4% of the total market volume. This figure more than doubles the 470 million-dollar flat transactions recorded in 2023. Approximately 60% of these transactions were priced between $1 million and $1.1 million.

Source: HDB

Notable transactions in 2024 included two 5-room flats at Boon Tiong Road and Henderson Road, which sold for $1.588 million each in June, surpassing the previous record of $1,568,888 set by a 5-room DBSS flat at Lorong 1A Toa Payoh in January. Additionally, a 5-room flat at Margaret Drive reportedly sold for $1.73 million in July, though this has yet to be officially recorded.

The high demand and limited supply also led to faster transactions, with some buyers paying cash over valuation (COV). In Sengkang, a 25-year-old executive maisonette spanning 143 square meters was sold for $1 million in April 2024, marking the area’s first million-dollar flat transaction. By contrast, towns like Choa Chu Kang, Jurong West, and Sembawang have yet to see any million-dollar transactions. The top three towns with the highest number of million-dollar flats in 2024 were Kallang/Whampoa, Toa Payoh, and Bukit Merah.

Policy Changes and Market Impact

In response to the escalating prices, cooling measures were introduced in August 2024. The Loan-to-Value (LTV) limit for HDB loans was reduced from 80% to 75%, aligning with the limits imposed by financial institutions. However, this policy change may have a limited impact on curbing price increases in both the broader HDB resale market and the million-dollar flat segment.

Another factor contributing to the heightened demand in 2024 was the entry of ex-private property owners (PPOs) who had completed their 15-month waiting period to purchase 5-room or larger flats. This added pressure to an already tight resale market.

Outlook for 2025

Looking ahead, the HDB resale market appears poised for further growth in 2025, despite a tightening supply. The effects of the COVID-19 pandemic in 2020, which severely disrupted the construction industry, will be felt in the form of reduced completions. Only 6,974 flats—the lowest number in a decade—are expected to fulfill their MOP in 2025, compared to 8,443 units in 2015.

Meanwhile, there are plans for 22 new launches in 2025, totaling approximately 11,787 units, including two Executive Condominium (EC) projects: Aurelle at Tampines and another at Plantation Close. More than 6,500 of these units will be located in the Rest of Central Region (RCR) and Outside Central Region (OCR), areas typically popular among HDB upgraders. These homeowners may sell their existing flats to avoid paying the Additional Buyer’s Stamp Duty (ABSD) on their second property, potentially adding some supply to the resale market.

However, the overall supply of resale flats in 2025 is anticipated to remain lower than in 2024, potentially sustaining the upward trajectory of resale prices.


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While this article has endeavoured to ensure that the information and materials contained herein are accurate and up to date as at [29/12/2024], Lushhomemedia.com is not responsible for any errors or omissions, or for the results obtained from their use or the reliance placed on them. All information is provided “as is”, with no guarantee of completeness, and accuracy.

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