Find a home that
suits your lifestyle

2Q2024 HDB Resale Market Trends: Insights & Analysis

The HDB resale market saw a steady rise in transactions during the first half of 2024, with a 6.9% year-over-year increase in the number of flats sold, totaling 14,420 units. This growth in sales was paired with a rise in resale prices, which increased by 4.2% in the first half of the year. The report outlines several potential factors contributing to the robust activity in the HDB resale market: 1. Expiration of the 15-Month Waiting Period: This policy, which ended in December 2023, had initially required sellers of private properties to wait 15 months before purchasing non-subsidized HDB resale flats. The conclusion of this waiting period likely spurred a release of pent-up demand, particularly boosting the number of transactions involving million-dollar flats. 2. Reduction in BTO and SBF Exercises: The lack of new Build-To-Order (BTO) and Sale of Balance Flats (SBF) options, particularly with the reduction of annual BTO exercises from four to three, redirected prospective buyers towards the resale market, further inflating demand. 3. Limited Availability of Flats Reaching MOP: Fewer flats reached their Minimum Occupation Period (MOP) in 2024 due to a drop in completion numbers five years prior, creating increased competition among buyers for available units. 4. Increased Interest in Older Flats: Older flats, particularly those with lease commencements prior to 1990, have become more attractive due to their affordability, comprising 39.3% of the transactions in the first half of 2024. These flats cater to different buyer segments, including older buyers looking for shorter leases that align with retirement plans. The rise in million-dollar HDB transactions was particularly notable, doubling from 208 in the first half of 2023 to 419 in the same period in 2024. This trend is attributed to sustained interest in larger and newer flats in prime locations, which command higher prices due to their desirable attributes. Despite the high-profile nature of million-dollar deals, they represented only a small fraction (3.0%) of the overall transactions. The majority of sales occurred in the more moderate price range, with 41.7% of the transactions between $400,000 to just under $600,000. This reflects a diverse and vibrant market accommodating a broad spectrum of financial capabilities and buyer needs. Looking forward, the HDB resale market is expected to remain resilient. The absence of a BTO exercise in August 2024 and the reduction of SBF exercises to once a year may prompt more prospective buyers to consider the resale market, especially those in urgent need of housing. This scenario is anticipated to keep prices competitive due to a balanced demand-supply dynamic. Overall, the HDB resale market in the first half of 2024 demonstrates a healthy mix of rising demand, robust transaction activity, and a market that caters to various buyer preferences, suggesting a positive outlook for the remainder of the year.

URA Insights: 2Q2024 Trends in the Private Property Market

The private property market in Singapore exhibited mixed dynamics in the first half of 2024, according to the latest quarterly statistics. New Home Sales Overview: New home sales in Q2 2024 moderated to 725 units, the lowest since Q4 2022, due to a reduced number of project launches which totalled only 634 units. The correlation between the lack of significant launches and decreased sales figures points to a strategic delay by developers, possibly aiming to optimize market conditions by spacing out project releases. Performance by Region: The Outside Central Region (OCR) defied the broader slowdown, accounting for 65.5% of the total new home sales in the first half of 2024, marking a significant increase and the highest share since the first half of 2021. This surge in OCR underscores ongoing demand for properties in these locales, despite overall market moderation. Top Selling Projects: "The Botany At Dairy Farm" led the sales in Q2 with 86 units sold at a median price of $1,994 per square foot, followed by "Hillhaven" with 63 units. The success of these projects has not only highlighted the enduring appeal of the OCR but also stimulated sales in neighboring developments, showcasing a dynamic market where the success of one project can uplift surrounding ones. Private Resale Market: Contrasting with the new home segment, the resale market thrived, with a 41.4% quarter-over-quarter increase in transactions in Q2, reaching the highest level since Q2 2022. This rise is attributed to recently completed developments and relaunched projects at appealing price points, which have drawn significant buyer interest. Notable Trends in Resale Segment: Developments like "Treasure at Tampines" and "The Residences at W Singapore Sentosa Cove" saw heightened activity, suggesting that the market for resale properties remains vibrant and responsive to quality offerings. This trend is likely to continue, driven by the availability of units completed in the previous year and compelling pricing strategies. Market Outlook: Looking ahead, the anticipation of new project launches in the second half of 2024 is expected to reinvigorate the new home sales market.

GLS Tender Results on Canberra Crescent, De Souza Avenue & Zion Road (Parcel B)

The report on the Government Land Sales (GLS) Tender Results for Canberra Crescent, De Souza Avenue, and Zion Road (Parcel B) highlights significant developer interest and investment potential in these areas, driven by strategic location, future land scarcity, and community development. Canberra Crescent saw three bids, with Peak Nature Pte Ltd and Huatland Development Pte. Ltd. leading at $279.0 million, translating to $793 psf per plot ratio (ppr). This reflects a 3.3% increase from the previous bid for a neighboring site, signaling strong market confidence. Developers' interest is particularly notable given the absence of upcoming land releases in the Sembawang area, positioning Canberra Crescent as a valuable acquisition amid limited future opportunities. The location benefits from excellent connectivity and nearby amenities. Situated close to Canberra and Sembawang MRT stations and major expressways, the area offers easy access to the city and key locations. Local developments like Canberra Plaza and Bukit Canberra enhance the locale’s appeal, providing extensive retail, dining, and recreational facilities, supporting a self-sufficient community. The previous successful launches of nearby projects like The Commodore and The Watergardens at Canberra suggest a robust demand, anticipating a strong market response for future developments, potentially fetching between $1,800 to $2,000 psf. De Souza Avenue attracted developers with its prime location in the Rest of Central Region (RCR), fetching a top bid of $278.9 million ($841 psf ppr) from SL Capital (8) Pte Ltd. The area's appeal is augmented by its proximity to Beauty World MRT station, abundant green spaces, and reputable schools, making it attractive for family-oriented developments. The local market shows stability with positive price trends, indicating strong future potential. The manageable size of the land parcel also makes it appealing for boutique developments, with expected launch prices around $2,500 to $2,600 psf. Zion Road (Parcel B), with its strategic urban location, drew a highest bid of $730.1 million ($1,304 psf ppr) from Valerian Residential Pte. Ltd. (Allgreen Properties Limited). This area's value is enhanced by its connectivity, situated between Great World and Havelock MRT stations, and its proximity to key shopping and lifestyle destinations. Despite the high bid, it was 34.0% lower than a neighboring parcel, suggesting a cautious market approach amid potential future land releases. However, the expected price range for new developments is estimated between $3,000 to $3,200 psf, reflecting the premium nature of the location and its redevelopment prospects. Overall, these areas represent significant investment opportunities with their strategic locations, comprehensive amenities, and potential for substantial returns on development. The careful calibration of bids and the projected pricing strategies reflect an optimistic yet prudent market outlook, poised for growth as new developments come to fruition.