HDB Resale Report – Q2 2024

Overview

In Q2 2024, HDB resale flat prices continued to rise, building on the growth in the previous quarter. Flash estimates released by the Housing and Development Board (HDB) indicated that resale flat prices rose by 2.1% QOQ in Q2 2024, accelerating from the 1.8% QOQ increase in the previous quarter. This marks the 17th straight QOQ growth in the HDB Resale Price Index.

Transactions and Prices

As per the flash estimates, the HDB resale price index is at a new high in Q2 2024 with an index reading of 187.6 points, reflecting an increase of 2.1% QOQ – the highest quarterly price gain since Q4 2022 (+2.3% QOQ).
The price growth is likely supported by several factors, including healthy resale flat demand, a higher number of flats resold for at least $1 million, a slightly larger proportion of flats sold at a higher price range, as well as a steady proportion of relatively newer resale flats sold during the quarter which supported prices.
Based on figures from the HDB, 7,208 flats (data up till 27 June 2024) were resold in Q2 – up by 14.5% from 6,297 resale flats transacted over the same period last year.
Including the 7,068 flats resold in Q1 2024, there have been more than 14,200 resale flats transacted in the year to 27 June 2024 period.
According to sales data, the average resale price of 5-room flats rose by 2.8% QOQ to about $724,000. Meanwhile, the average resale prices of 3-room and 4-room flats were up by 2.7% QOQ and 2.5% QOQ respectively in Q2 2024.

Meanwhile, the number of HDB flats resold for at least $1 million has risen for the sixth straight quarter in Q2 2024, with a record 236 such flats sold – up by about 29% from 183 such flats sold in the previous quarter.
This takes the number of such flats transacted to 419 units in the first six months of the year – and it looks likely to breach the record of 469 units resold in the entire 2023. In Q2 2024, million-dollar resale flats made up around 3.3% of the quarter’s sales, based on transaction data.

HDB Resale Market Outlook

HDB resale prices have largely stabilised from the double-digit growths seen in 2021 and 2022. That said, the number of million-dollar flats resold has picked up in the first half of 2024. While the buyer profile details of such flats are not available, it is possible that former private home owners who have sat out the 15-month wait-out period (intro- duced in September 2022) could have returned to the market and pushed up the sales number.

PropNex expects the demand for HDB resale flats to remain resilient for the rest of the year, with the overall annual HDB resale volume possibly coming in at 27,000 to 28,000 units in 2024. PropNex projects that the overall HDB resale prices could rise by 6% to 7% for the whole of 2024.

Meanwhile, the HDB is expected to launch about 8,500 new flats for sale under its Build-to-Order (BTO) exercise in October, including in attractive locations in Kembangan, Bayshore, Kallang Whampoa, and Ang Mo Kio. These could potentially draw some buyers away from the HDB resale market, particularly those who do not mind waiting some years to get their new home.

House Are You

Overview

Transactions and Prices

HDB Resale Market Outlook

Two-Speed Housing Market In Q2 2024

Private Residential Property Report – Q2 2024