Prices
HDB resale prices grew slower in the final quarter of 2024. According to flash estimates released by HDB, the prices of HDB flats registered a 2.5 per cent increase in the fourth quarter of 2024, slower than the 2.7 per cent upturn observed in the third quarter of 2024. This represents the slowest growth rate since the second quarter of this year, during which prices rose by 2.3 per cent.
For the whole of 2024, prices grew by 9.6 per cent, faster than the 4.9 per cent growth in 2023 but slower than the 10.4 per cent increase in 2022 and 12.7 per cent in 2021.
According to HDB caveat data from data.gov.sg downloaded this morning at 8.15 am, a slowdown in price growth has been observed for some flat types. For example, the median price of 4-room flats saw a quarter-on-quarter (q-o-q) increase of 2.5 per cent in Q4 2024, a slower pace when compared to the 3.4 per cent growth in Q3 2024. Similarly, 2-room flats rose by 2 per cent q-o-q in Q4, slower than the 3.9 per cent growth in Q3. Executive flats registered a 1.2 per cent q-o-q price increase in Q4, compared to 1.7 per cent in the earlier quarter. In contrast, prices for 5-room flats grew at a faster rate of 3.2 per cent in Q4, up from only 1.2 per cent in Q3.
Resale volume declined by 3.6 per cent, dropping from 6,547 cases in Q4 2023 (up to 30 December) to 6,314 in Q4 2024 (up to 30 December). On a quarterly basis, sales volume dipped by 22.5 per cent from 8,142 units in Q3 2024 to 6,314 in Q4 2024 (up to 30 December).
The sales decline observed in the fourth quarter of this year was primarily due to the Housing and Development Board (HDB) launching over 8,500 new flats in October, many of which are situated in prime and desirable locations. The attractive features of these flats, including scenic views and proximity to MRT stations, diverted demand away from the resale market towards the Built-To-Order (BTO) market. Moreover, sales tend to be slower during the year-end because of the school holidays, when many Singaporeans tend to travel abroad. As a result, housing viewings and sales activities typically decrease during this time.
For the whole of 2024, resale volume was 28,876, which is 8 per cent higher than the corresponding period last year at 26,735 units, and 2022 at 27,896 units. However, this is lower than the 31,017 units in 2021.
The decline in resale transactions has led to a decrease in million-dollar flat transactions, which fell from 331 units in Q3 2024 to 283 units in Q4. Despite this drop, the total number of million-dollar transactions reached a record high of 1,033 units in 2024. This figure is more than double the 469 million-dollar transactions recorded in the previous year.
Market Outlook
As we look ahead to 2025, resale prices are expected to continue rising, but at a slower rate than in previous years. In many areas, prices have already reached new highs, creating affordability concerns for many potential buyers.
Furthermore, the ongoing supply of BTO flats is expected to help moderate price growth in the secondary market. However, the degree of price stabilization will depend on the number of BTO flats the government plans to release in the upcoming years.