High demand drives HDB resale, private housing prices
Singapore's public housing resale market has experienced a significant rise in prices in the fourth quarter of 2024, according to data from the Housing and Development Board (HDB).
Prices increased by 2.6 per cent in Q4, culminating in a full-year growth of 9.7 per cent that is attributed to to robust demand and limited supply.
Despite the price increase, the number of resale transactions dropped by 21.1 per cent quarter-over-quarter and 1.9 per cent year-over-year.
Over the entire year, transactions saw an 8.4 per cent increase compared to the previous year.
In response to the heated market, the government has implemented measures to cool the market.
Lowering the loan-to-value limit to 75 per cent in August 2024 aimed to encourage greater financial prudence among buyers.
However, households are advised to remain cautious in their property purchases as the market moves in cycles, potentially impacting those who buy at high prices.
On the rental front, the median rents for HDB flats saw a slight decrease.
Approved applications to rent out HDB flats fell by 5.6 per cent from the previous quarter, and 12.1 per cent compared to the same period in 2023.
For the full year of 2024, the total number of approved rental applications decreased by 6.3 per cent.
Looking ahead, HDB plans to increase the supply of new flats significantly.
Over 25,000 new flats will be launched in 2025, with 19,600 BTO flats and more than 5,500 flats under the Sale of Balance Flats (SBF) exercise.
The upcoming February 2025 launch will feature about 5,000 BTO flats across key areas, alongside the largest-ever SBF exercise.
In the private housing market, prices rose by 2.3 per cent in Q4 2024, matching earlier estimates.
For the entire year, private residential prices increased by 3.9 per cent.
While rents for private homes remained unchanged from the previous quarter, the demand for new launches continued to drive the market.
Read more on the latest on Singapore's property market here.