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Press Release

26 Jul 2024

HDB has just released the Q2 2024 public housing data.

https://www.hdb.gov.sg/about-us/news-and-publications/press-releases/26072024-Upcoming-Flat-Supply-and-2nd-Quarter-2024-Public-Housing-Data

HDB Resale Price Index

The thriving public housing market continued to gain momentum, with a notable increase in resale transactions and price appreciation during the second quarter.

According to the Housing Development Board (HDB) data released today, resale prices increased by 2.3 per cent in Q2 2024, marking the 17th consecutive quarter of price growth. This growth rate was higher than the 1.8 per cent increase seen in Q1 2024 and the fastest since Q4 2022, at 2.3 per cent.

In the first half of this year, prices grew by 4.2 per cent, surpassing the 2.5 per cent growth seen in the first half of 2023 but slower than the 5.3 per cent growth in the first half of 2022.

Prices grew faster in Q2 for most flat types when compared to the preceding quarter, based on HDB data from data.gov.sg downloaded this morning at 8.20 am. The average resale price of 5-room flats increased by 2.8 per cent in Q2 2024, faster than the 1.5 per cent growth in Q1 2024, while resale prices of 4-room flats went up by 2.5 per cent in Q2, compared to 1.3 per cent in Q1. Likewise, resale prices for 3-room and 2-room flats rose by 2.8 per cent and 1.8 per cent, respectively, up from 1.7 per cent and 1.6 per cent in the preceding quarter.

Million-dollar transactions

The number of million-dollar transactions has set a new record, with 236 units inked in the second quarter of this year, surpassing the previous quarterly high of 183 units in Q1 2024. A total of 419 million-dollar transactions were recorded in the first half of this year, which is on track to double the total number of 469 million-dollar flats transacted in the entire year of 2023.

In the top price bracket, the number of resale flats transacted for at least S$1.3 million has set a new record, with 28 units sold in Q2 2024, bringing the total number of such transactions to 112 units from Q4 2021 to Q2 2024. No flats were sold at this price range prior to Q4 2021.

Resale flats sold for at least S$1.5 million jumped from one unit in Q2 2023 and two units in Q1 2024 to nine units in Q2 2024, indicating a noticeable uptick in sales at the highest price point.

Resale Volume

The number of resale flats rose by 4 per cent from 7,068 units in the first quarter of 2024 to 7,352 units in the second quarter. In the first half of this year, 14,420 resale flats were transacted, surpassing the 13,493 units in 1H 2023 and marking the highest half-year sales since 1H 2021, when 14,644 resale flats were transacted.

The demand for larger resale flats has remained strong despite the general uptrend in resale prices. In the first half of 2024, there were 4,214 transactions for 5-room and executive flats, representing a significant 9.3 per cent increase from the 3,854 units sold in 1H 2023. These larger flat transactions also accounted for a higher proportion of total sales, climbing from 28.6 per cent in 1H 2023 to 29.2 per cent in 1H 2024.

The strong demand for larger flats could be attributed to more private homeowners having fulfilled the 15-month wait-out period when they purchase a resale flat.

Rental

The rental demand for HDB flats has remained relatively stable. This is because HDB flats continue to offer the most affordable units in the market. The HDB public housing data for Q2 2024 shows a slight increase of 1.7 per cent in approved applications to rent out HDB flats, from 9,398 units in Q1 2024 to 9,554 in Q2.

For the first half of 2024, there were 18,952 approved applications, a 2.8 per cent drop from the 19,499 units registered over the same period in 2023.

Moving forward, we anticipate that overall leasing volume will continue to fall in the second half of the year due to the reduction in rental inventory and year-end lull. The number of flats reaching their minimum occupation period has decreased over the past two years, leading to a decline in available rentals. Demand may also decrease as more tenants shift back to the private market, attracted by the competitive rental rates offered by landlords.

Outlook

The current market outlook for the public housing sector is undeniably positive, underpinned by Singapore’s positive economic growth and improved hiring landscape, which have bolstered consumer confidence. Moreover, the increased housing grants for eligible homebuyers rendered resale flats to be more accessible and affordable for many homebuyers, particularly young couples.

Additionally, the new HDB resale portal helps streamline and expedite the home selection process for prospective buyers of resale flats. The faster and more efficient home purchasing process may attract more buyers to the secondary market, as they can make listing comparisons more easily and purchase a home more quickly.

Given the robust demand for resale flats and that price growth is on target, we revised our price projections higher, with an expected increase of up to 8 per cent this year.

Press Release

by OrangeTee & Tie Pte Ltd.

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HDB Quarterly Data