SRI - Singapore Realtors Inc.

24 Jan 2025

How 4Q2024 Shaped HDB Resale Prices and Transactions

Property Insight

2024 HDB Resale Review: Sustained Growth Despite Moderation

The HDB resale market in 2024 demonstrated remarkable resilience, with resale prices increasing by 9.7% for the year, nearly double the 4.9% growth recorded in 2023. However, the fourth quarter (4Q2024) showed signs of moderation, with a quarterly price increase of 2.6%, slightly below the 2.7% seen in the third quarter. This moderation is a reflection of a more balanced market as cooling measures and other factors influenced buying activity.

Key Drivers of Price Growth

The robust growth in resale prices was primarily driven by the limited supply of flats reaching their Minimum Occupation Period (MOP) in 2024, creating upward pressure on prices. Buyers showed strong interest in newer flats and larger units, such as five-room and executive flats, which cater to the needs of growing families. Executive flats experienced the most significant transaction growth, increasing by 17.6% year-on-year to 1,820 units. This reflects a growing preference for spacious homes amid limited supply.

Resale Volumes and Trends

While resale transactions in 4Q2024 moderated to 6,424 flats, down from 8,142 in 3Q2024, the overall resale volume for 2024 reached 28,986 flats, marking an 8.4% year-on-year increase. This was the highest annual volume since 2021, driven by demand for flats nearing their MOP and larger flat types. Seasonal factors, such as the year-end holiday lull and the October BTO exercise introducing Standard, Plus, and Prime flats, likely contributed to the softer activity in 4Q2024.

Despite the moderation in million-dollar transactions due to cooling measures, the market remained resilient. A total of 1,035 million-dollar resale flats were sold in 2024, more than doubling the 469 transactions in 2023. This underscores the sustained demand for flats with unique attributes, even amid regulatory changes.

Outlook for 2025

In summary, the HDB resale market remains robust despite short-term challenges, with sustained demand for larger units and innovative solutions addressing supply constraints. The strategic mix of immediate and long-term housing options positions Singapore’s public housing landscape for stability and growth in 2025.

Click here for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

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One-North’s Growth: Qingjian Realty & Forsea Residence Submit Top Bid for Media Circle

The Government Land Sales (GLS) tender for Media Circle (Parcel A), designated for residential development with commercial use on the first storey, concluded with a top bid of $315.0 million ($1,037 psf ppr). The top bid came from CNQC Realty (Bloomsbury) Pte. Ltd. (Qingjian Realty), Forsea Residence Pte. Ltd., and Hoovasun Holding Pte. Ltd.

Having already secured another site in Media Circle, Qingjian Realty and Forsea Residence continue to expand their One-North presence. Their aggressive acquisition strategy underscores confidence in the area's long-term growth, given One-North’s role as a hub for innovation, research, and technology-driven industries. Their strong optimism in the demand for high-quality residential projects is reflected in their competitive bid, further reinforcing the precinct’s attractiveness.

Located within the Queenstown Planning Area, Media Circle (Parcel A) benefits from its strategic positioning in a vibrant mixed-use environment. The area’s limited housing stock presents a unique opportunity to meet demand while leveraging proximity to key industries, educational institutions, and transport networks. This creates a highly connected and convenient residential ecosystem that integrates seamlessly with the live-work-play model.

The Rest of Central Region (RCR) experienced 5.8% growth in non-landed home prices in 2024, surpassing the 3.1% increase in 2023. This price momentum signals renewed buyer interest, supported by new project launches such as The Hill @One-North, Emerald of Katong, and Nava Grove. These developments reinforce the RCR’s investment potential and desirability as a residential choice.

With the upcoming Bloomsbury Residences launch at Media Circle, expectations are set for new pricing benchmarks. Based on market trends and buyer sentiment, new launch prices are projected between $2,300 and $2,400 psf. This aligns with the premium pricing attached to RCR properties, reflecting strong demand and a resilient private residential market.

As Singapore’s property market continues to evolve, the sustained interest in One-North developments highlights the importance of strategic land acquisition in prime locations. Developers remain optimistic, recognizing the area’s growth potential and the need for well-integrated urban solutions.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

Property Insight

Singapore’s Industrial Market Outlook 2025: Growth, Trends & Insights

Singapore’s economy expanded by 4.4% in 2024, a strong acceleration from 1.8% in 2023. This growth was driven by the wholesale trade, finance & insurance, and manufacturing sectors. The manufacturing sector rebounded 4.3% in 2024, reversing a 4.2% contraction in 2023. The electronics and transport engineering clusters were key drivers, benefiting from rising global demand, artificial intelligence (AI), cloud computing, and advanced digital infrastructure.

Looking ahead, Singapore’s GDP growth forecast for 2025 is maintained at 1.0% to 3.0%, with the electronics cluster expected to remain robust due to sustained demand for semiconductor chips.

Strata Industrial Transactions: A Strong Year in 2024

The strata-titled industrial market saw a 10.2% increase in transaction volume from 1,594 in 2023 to 1,756 in 2024. Transaction values grew 10.5%, from $1.8 billion to $2.0 billion, indicating strong investor confidence.

Among the top transactions, the largest freehold sale was a 15,608 sq. ft unit at Apex @ Henderson, transacted for $14.5 million ($929 psf) in February 2024. Another freehold unit at Amtech Building, Sin Ming Road, was sold for $12.5 million ($931 psf) in June 2024. Leasehold industrial sales in Tuas South Connection dominated the list, with the largest leasehold sale at 6X Tuas South Link 1, transacted at $9.2 million for 28,858 sq. ft in June 2024.

Industrial Rental Trends: Resilience Amid Evolving Demand

The industrial rental market remained resilient, driven by logistics, advanced manufacturing, and high-tech industries.

This reflects continued demand for industrial spaces, though tenants are becoming more selective due to higher costs.

Outlook: Stability and Growth Opportunities

Industrial property prices are expected to remain stable in 2025, influenced by macroeconomic factors, supply pipelines, and demand from key industries. Singapore will see the completion of 1.2 million square meters of new industrial space in 2025, with an additional 2.1 million square meters in 2026-2027.

The electronics sector remains optimistic, driven by semiconductor demand for AI applications. Despite uncertainties surrounding U.S. trade policies and global economic fluctuations, business sentiment remains positive.

Freehold Investment Opportunity

Freehold industrial assets remain highly sought after, with CT Pemimpin standing out as a strategic investment opportunity due to its prime location and connectivity to key business hubs.

Singapore’s industrial market is poised for continued resilience, supported by structural demand drivers and a strong investor base.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

Property Insight

Budget 2025: Building a More Inclusive and Sustainable Housing Market

Budget 2025 prioritizes affordability, accessibility, and sustainability in both public and private housing. With an emphasis on homeownership support, climate-friendly initiatives, and senior-friendly modifications, the government aims to provide inclusive policies that cater to all Singaporeans.

Public Housing – Expanding Supply & Affordability

The government is expanding housing options to improve affordability, especially for first-time homebuyers. Prime Minister Lawrence Wong noted that application rates for Build-To-Order (BTO) flats have stabilized and are now lower than pre-pandemic levels, indicating a more balanced supply-demand situation.

To ensure sufficient housing stock, more than 50,000 new HDB flats will be launched islandwide over the next three years. These developments, located in key estates such as Woodlands, Bayshore, and Mount Pleasant, aim to meet the diverse housing needs of Singaporeans.

For those seeking faster access to a home, HDB is prioritizing shorter waiting times. In 2025, about 3,800 flats with waiting periods of less than three years will be launched, accounting for approximately 20% of the total BTO supply.

Recognizing the strong interest in completed flats, the government will introduce another SBF exercise in 2025, providing homebuyers with additional options.

To further assist lower-income families, the Fresh Start Housing Scheme grant has increased from S$50,000 to S$75,000. This initiative, previously limited to second-timer families, now extends to first-time families living in rental housing.

Private Housing – Sustainability & Senior-Friendly Measures

Enhancements to Climate Vouchers

To support sustainability, the government is enhancing the Climate Friendly Households Programme. HDB households will receive an additional S$100 in Climate Vouchers, raising the total to S$400.

For the first time, private property households will also receive S$400 in Climate Vouchers, expanding support for sustainable living across Singapore.

Enhancements to Senior-Friendly Home Modifications

The Enhancement for Active Seniors (EASE) programme will be extended until 2028. Previously available only to HDB flats, it will now include private property households, allowing more seniors to age safely and independently at home.

Why It Matters

• Improved Affordability: Stabilized application rates provide more homebuyers with the opportunity to secure a flat.

• Faster Access to Housing: The introduction of a second SBF exercise in 2025 increases the chances of obtaining a ready-to-move-in unit.

• Balanced Housing Supply: The ramp-up in BTO launches prevents excessive price increases and meets long-term housing needs.

• Sustainability & Inclusivity: Expanding Climate Vouchers and senior-friendly modifications ensures equitable access for all Singaporeans.

Budget 2025 reinforces the government’s commitment to affordable, sustainable, and inclusive housing policies, ensuring Singaporeans have more opportunities for homeownership while fostering a livable and resilient community.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

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