Introduction
The Housing Development Board (HDB) resale prices have continued to rise, marking the 17th consecutive quarter of growth. The latest figures show a 2.3% increase in the second quarter of 2024 (2Q2024). This significant increase underscores the ongoing demand for HDB flats in Singapore.
Overview of the Market
The HDB resale market has been experiencing a prolonged period of growth, with prices increasing consistently over the past few years. This trend is driven by various factors, including:
- Demographic Shifts: Changes in Singapore’s demographics, such as an aging population and a growing number of young professionals, have led to increased demand for housing.
- Economic Growth: Singapore’s robust economy has contributed to higher disposable incomes, enabling more people to enter the property market.
- Government Policies: The Singapore government’s policies, such as the Home Ownership Plus Education Scheme (HOPE), have made it easier for first-time homebuyers to enter the market.
Flash Estimates
The HDB released flash estimates on July 1, 2024, indicating that resale flat prices rose by 2.1% in 2Q2024. This increase is slightly lower than the 2.3% q-o-q increase reported later in the quarter. The flash estimates are preliminary figures that provide an early indication of market trends.
Quarterly Price Growth
The HDB resale price index has been growing steadily for 17 consecutive quarters. This remarkable streak began in the fourth quarter of 2019 and has continued unabated. The quarterly price growth has varied, with some quarters seeing larger increases than others. For example:
- 1Q2024: The HDB resale price index rose 1.7%, marking a slight slowdown from the 1.1% growth in the previous quarter.
- 4Q2023: The index grew by 1.1%, following a 1.8% increase in the previous quarter.
Million-Dollar Flats
The surge in million-dollar flats is another notable trend in the HDB resale market. In the first quarter of 2024, million-dollar flats saw a significant increase of 32.8% q-o-q. This trend is expected to continue, driven by the increasing demand for high-end properties.
Market Insights
The ongoing growth in HDB resale prices is expected to continue, driven by several market insights:
- Supply and Demand: The supply of HDB flats is relatively low compared to demand, leading to price increases.
- Investment Opportunities: The HDB resale market offers attractive investment opportunities, particularly for those looking to diversify their portfolios.
- Government Initiatives: The Singapore government’s initiatives to support home ownership, such as the HOPE scheme, are expected to further drive demand.
Conclusion
The HDB resale market continues to thrive, with prices increasing for the 17th consecutive quarter. The 2.3% q-o-q increase in 2Q2024 underscores the ongoing demand for HDB flats in Singapore. As the market continues to evolve, it is essential to monitor trends and insights to make informed decisions about property investments.
