Resale Flat Prices Rise 25 3Q2024 Hdb Flash Estimates
In the third quarter of 2024, HDB resale flat prices have experienced a continuous upward trend for the 18th consecutive quarter. According to flash estimates released by HDB on October 1, prices have risen by 2.5% quarter-on-quarter (q-o-q), an acceleration from the 2.3% q-o-q growth seen in the second quarter of 2024. This marks the highest quarterly increase since the third quarter of 2022, when prices rose by 2.6% q-o-q. The current rate of growth, at 6.8% since the start of the year, is also faster than the 3.8% increase recorded over the same period in 2023. However, it falls short of the 8% spike seen in the first three quarters of 2022.
This sustained growth in HDB resale prices can be attributed to strong demand and a limited supply of new HDB flats reaching their minimum occupancy period (MOP) in 2024, compared to the previous year. HDB has also reported a surge in resale transaction volume, with 8,035 deals recorded as of September 29, a 20% increase from the same period in 2023.
The 3Q2024 flash estimates released by HDB mainly reflect market conditions before the implementation of the fourth round of cooling measures on August 20. The measures targeted the HDB market and included a reduction of the loan-to-value (LTV) limit on HDB loans from 80% to 75%, bringing it in line with loans offered by financial institutions. This move aimed to promote responsible borrowing, according to Minister of National Development Desmond Lee.
The Pan Island Expressway (PIE) is an essential expressway that runs from east to west in Singapore, serving as a vital transportation route for quick and convenient travel throughout the island. With its extensive reach, the PIE connects various areas and promotes seamless connectivity across the country. As a result, it has become a crucial part of Singapore’s transportation infrastructure. And now, with the addition of Novo Place Showflat, the PIE offers even more convenience and accessibility for commuters.
In the month of October, HDB will offer approximately 8,500 flats across 15 Build-to-Order (BTO) projects in the last BTO exercise of the year. This accounts for 40% of the total number of BTO flats launched this year. The October BTO exercise will also introduce a new classification for HDB flats, categorising them as Standard, Plus or Prime based on their location attributes.
With this launch, HDB remains on track to meet its goal of launching 100,000 new flats from 2021 to 2025. For more information on HDB properties, including price trends, rental and sale transactions and loan rates, please check out the latest listings on Ask Buddy.