HDB resale prices and sales up in Q2 amid 'strong broad-based demand'

The resale prices of public housing flats grew 2.3 per cent in the second quarter of 2024. 

It is an increase from the 1.8 per cent seen in the previous quarter, said the Housing and Development Board (HDB) in a media statement on Friday (July 26).

The Resale Price Index (RPI) for the second quarter rose by 2.3 per cent to 187.9, according to HDB data. 

The RPI compares the overall price movements of resale flats.

The total number of flats that changed hands also increased for the second quarter of 2024, rising by four per cent, from 7,068 in Q1 to 7,352 in Q2.

Resale transactions for the second quarter of 2024 is 12.9 per cent higher than the same period last year.

Vast majority of resale flats remained affordable in Q2: HDB

HDB attributed the growth in resale prices and volume to a "strong broad-based demand", and supply tightness in the market with fewer new flats meeting the Minimum Occupation Period this year compared to last year. 

The housing board noted that while overall economic conditions are sound, the global economic outlook is uncertain, given ongoing geopolitical instabilities that could "precipitate global supply and demand shocks".

With domestic mortgage rates expected to remain elevated relative to the low level seen over the past decade, HDB said households should exercise prudence in their property purchases and ensure that they can service their mortgages over the long term.

"The government will continue to monitor the property market closely and adjust its policies as necessary to promote a stable and sustainable property market," they said, adding that million-dollar flat transactions continued to make up a small proportion of total resale transactions in the second quarter of this year.

"The vast majority of resale flats were transacted at a much lower price and remained affordable," said HDB.

Separately, HDB said that 8,500 flats will be offered across 15 Build-To-Order (BTO) projects in the October exercise. 

The new BTO projects will be offered as Standard, Plus or Prime flats based on their specific locational attributes. More details on the projects will be shared during the launch, said HDB.

HDB added that they are committed to providing affordable and accessible housing options to Singaporeans.

"We will continue to monitor the housing demand closely, making adjustments where necessary. We remain on track to launch a total of 100,000 flats from 2021 to 2025," said the housing agency. 

Private homes price increase sees slower pace in Q2

The prices of private homes in Singapore also saw an increase in Q2 of 2024, albeit at a slower pace of 0.9 per cent compared to the 1.4 per cent increase in the previous quarter.

Data from the Urban Redevelopment Authority (URA) also showed that the prices of landed properties increased by 1.9 per cent in the second quarter, while the prices of non-landed properties rose by 0.6 per cent.

The prices of non-landed properties in the core central region (CCR), however, decreased by 0.3 per cent in Q2 of 2024, compared to the 3.4 per cent increase in the previous quarter.

In the rest of central region (RCR), prices were up 1.6 per cent in Q2 after rising 0.3 per cent in the previous quarter.

Prices for non-landed properties outside central region (OCR) inched up 0.2 per cent in Q2, the same as in the previous quarter.

ALSO READ: 8 HDB BTO flats reaching MOP in 2024/25

chingshijie@asiaone.com