ISSUE 082 | HDB RESALE August 2024

Older Flats Achieve Record Sales; Price

Growth Outpaces Younger Flats
HDB Resale Market
Mid-Year Review & Outlook

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The public housing market demonstrated
significant momentum in the first half of
2024, marked by robust sales and
substantial price growth. Notably, older
resale flats experienced a surge in demand,
achieving record sales and outpacing the
price growth of younger flats in Q2 2024.

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 PRICE TREND
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, 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 (Chart 1).

Prices grew faster in Q2 for most flat types when compared to the preceding quarter, based
on HDB data from data.gov.sg. 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. Resale prices rose in 21 out of 26 towns in Q2 2024, compared to 20 in
the preceding quarter (Table 1). The biggest gains were in Geylang (13.1 per cent), Marine Parade
(11.5 per cent), Central Area (9.3 per cent), Toa Payoh (7.1 per cent) and Pasir Ris (5.5 per cent).

The price growth can be attributed to the stronger demand for resale flats, driven by the
increased housing grants for eligible homebuyers, which rendered resale flats more accessible and
affordable for many homebuyers. Furthermore, 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 have attracted more buyers to the secondary market, as
they can make listing comparisons more easily and purchase a home more quickly.

Table 1 Avg prices rose in 21 towns in Q2 2024

Chart 1 Resale prices grew faster in Q2

Source: Data.gov.sg, OrangeTee & Tie Research & Analytics

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Standard flats exclude adjoined flats, DBSS< improved-maisonette, maisonette,
 HDB RESALE TRANSACTIONS IN Q2 2024
North Region
Total no. Average Resale Price
Towns of units
sold 3-Room 4-Room 5-Room
Sembawang (SBW) 225 $465,079 $574,479 $626,376
Woodlands (WDL) 505 $415,975 $533,060 $638,447
Yishun (YIS) 467 $416,185 $534,477 $670,170

West Region North-East Region

Total no. Average Resale Price Total no. Average Resale Price
Towns of units Towns of units
sold 3-Room 4-Room 5-Room sold 3-Room 4-Room 5-Room
Bukit Batok (BBT) 452 $409,533 $583,874 $746,872 Ang Mo Kio (AMK) 275 $421,739 $678,388 $847,574
Bukit Panjang (BPJ) 205 $415,251 $554,911 $683,603 Hougang (HGN) 401 $428,996 $585,791 $724,598
Choa Chu Kang (CCK) 360 $406,952 $518,983 $614,397 Punggol (PGL) 475 $495,951 $625,399 $723,416
Clementi (CLE) 140 $422,818 $708,626 $916,556 Sengkang (SKG) 493 $488,143 $609,454 $673,331
Jurong East (JUR) 154 $389,125 $511,421 $623,195 Serangoon (SER) 120 $425,591 $636,558 $764,903
Jurong West (JUW) 477 $367,747 $504,911 $606,254

Central Region East Region

Total no. Average Resale Price Total no. Average Resale Price
Towns of units Towns of units
sold 3-Room 4-Room 5-Room sold 3-Room 4-Room 5-Room
Bishan (BSH) 97 $478,063 $725,918 $1,016,791 Bedok (BDK) 376 $403,221 $595,729 $754,778
Bukit Merah (BMH) 272 $509,363 $833,070 $1,029,289 $568,296 $612,636 $706,918
Pasir Ris (PSR) 167
Bukit Timah (BTH) 13 $476,667 $662,500 $1,162,600
Tampines (TAM) 519 $475,610 $633,517 $754,520
Central Area (CTA) 46 $517,894 $857,633 $1,040,000
Geylang (GEY) 159 $395,143 $782,948 $905,619
Kallang / Whampoa (KAL) 246 $478,959 $840,696 $905,417
Marine Parade (MPR) 36 $445,563 $548,889 $984,210
Queenstown (QUE) 164 $446,286 $869,110 $1,044,851
Toa Payoh (TAP) 203 $447,973 $789,609 $1,035,305

Source: Data.gov.sg, OrangeTee & Tie Research & Analytics

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Standard flats exclude adjoined flats, DBSS< improved-maisonette, maisonette,
Model A-Maisonette, New Generation, Premium Apartments and Maisonette,
 SALES 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.

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.

The number of million-dollar transactions has set a new record, with 236 units inked in Q2
2024, 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, 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. The number of resale flats transacted for at least S$1.3 million reached
a record-breaking 28 transactions 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.

Older Flats Achieved Record Sales

Chart 2 Record number of older resale flat transactions More homeowners are buying older flats despite
their declining leases. Demand for older resale flats,
particularly those at least 40 years old has been
picking up over the years, and the trend has
culminated in a record six-month sale, with 3,042
transactions in 1H 2024 (Chart 2), surpassing the
previous first-half record of 2,412 units in 1H 2023,
according to HDB data from data.gov.sg.

The total number of transactions for older

flats is expected to reach a new high this year, as
the first half of 2024 already accounts for 64 per
cent of the total 4,750 units sold in 2023.

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 Chart 3 Older flats represent a high proportion of total resale transactions

Furthermore, older flats represented a growing proportion of total resale transactions, reaching a new
high of 22 per cent of 13,838 transactions in 1H 2024 (Chart 3). The rising demand could be attributed
to policies which have made older flats more favourable. For instance, buyers can now take an HDB
housing loan of up to 80 per cent Loan-to-Value (LTV) limit if the remaining lease of the flat can cover
the youngest buyer to the age of 95. This is even if the flat has less than 60 years left on its lease*.
(* https://www.mom.gov.sg/newsroom/press-releases/2019/0509-more-flexibility-to-buy-a-home-for-life)

Moreover, the government has implemented the Home Improvement Programme (HIP) to
revitalize many older flats, resulting in a significant improvement to the living environment and the
quality of life for numerous residents. This initiative has made these older flats more appealing.

Demand for older flats may continue to rise as prices of newer flats are substantially higher,
although the price gap between newer and older flats has closed over the past year. For instance, the
average price of younger resale flats (less than 10 years) is 39.4 per cent higher than older ones in Q2
2024. However, this price gap is narrower than last year at 43.1 per cent in Q2 2023 (Chart 4). This could
be due to the average price of older resale flats growing at a faster pace of 8 per cent, from S$433,341
in Q2 2023 to S$467,940 in Q2 2024, compared to the 5.2 per cent increase for younger resale flats from
S$619,971 to S$652,283 over the same period.

Chart 4 Older flat prices rose faster by 8% from Q2 2023 to Q2 2024

Older flats in Bedok (232 units),

Ang Mo Kio (200 units),
Kallang/Whampoa (111 units),
Bukit Merah (110 units) and Toa
Payoh (109 units) were the most
sought-after, as they recorded the
highest number of transactions in
Q2 2024. By flat type, older 3-
room flats were most popular (977
units), followed by 4-room flats
(378 units), and 5-room flats (174
units) last quarter.

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 2H2024 Market Outlook
HDB Market Projections

Indicators 2021 2022 2023 Q1 2024 Q2 2024 H1 2024 Projection for 2024

Resale
Price Change 12.7% 10.4% 4.9% 1.8% 2.3% 4.2% 7% to 8%
Sales Volume (units) 31,017 27,896 26,735 7,068 7,352 14,420 27,000 to 28,500
Rental
Rental Price Change (SRX-99.co) 7.0% 28.5% 10.2% 0.9% 0.5% 1.4% 2% to 3%
HDB Rental Applications 42,623 36,166 39,138 9,398 9,554 18,952 36,500 to 38,000
Source: HDB, data.gov.sg, SRX-99.co, OrangeTee & Tie Research & Analytics

Source: Data.gov.sg, HDB, OrangeTee & Tie Research & Consultancy Copyright © OrangeTee & Tie Pte Ltd. All rights
reserved.

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. While competition for buyers may stiffen as the government plans to
release more flats in good locations in October, some may be classified as Plus flats, and are
subjected to a 10-year Minimum Occupation Period (MOP) and stricter resale conditions.
Therefore, certain resale flats in the vicinity may still benefit from the Build-To-Order (BTO) sales
launch due to the heightened awareness of the area and shorter 5-year MOP. 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.

Please contact us for research inquiries. For sales enquiries,

please contact your preferred OrangeTee agents.

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