Breaking Down the Latest Trends in HDB Resale Market
In the ever-evolving landscape of the Housing and Development Board (HDB) resale market, several key trends and factors are shaping the current scenario. Let’s delve into the insights provided by top industry experts to understand the implications for buyers, sellers, and investors alike.
Impact of New Flats Release on Resale Demand
- The release of more flats with shorter waiting times in future Build-To-Order (BTO) launches could potentially impact resale demand and prices.
- Huttons Asia chief executive Mark Yip believes that the latest cooling measures are not the primary reason for the lower volume in transactions.
- Sellers are holding onto their asking prices due to lesser supply of homes for sale, resulting in higher prices for buyers.
Strong Demand and Price Growth Forecast
- Despite the lower transaction volume, demand is expected to remain strong in 2024 due to lower interest rates and lower borrowing costs.
- Huttons Asia forecasts HDB resale volumes to range between 29,000 and 30,000 for the year, with resale price growth estimated to be between 8 and 10 per cent.
Million-Dollar Flats Trend
- In September 2024, there were 106 HDB flats resold for at least $1 million, comprising 4.8 per cent of the total resale volume.
- Notable areas with million-dollar transactions included Kallang Whampoa, Queenstown, Bukit Merah, and Toa Payoh.
- The proportion of sales in the $800,000 to $1 million range has stabilized, with predictions of the number of million-dollar flats sold to exceed 1,000 by the end of the year.
Future Outlook and Record-Breaking Predictions
- Experts like Nicholas Mak from Mogul.sg estimate that about 990 to 1,000 million-dollar flats could be sold in 2024, setting a new record in the public housing resale market.
- Buyers are attracted to larger HDB resale flats with higher floors, offering more value for their money compared to condominium units in the same price range.
With these insights and predictions, it’s clear that the HDB resale market is experiencing both challenges and opportunities. Buyers and sellers should stay informed about these trends to make informed decisions and seize potential growth opportunities in the market.