According to preliminary estimates released by the HDB on July 1st, 7,208 HDB resale flats were transacted in the second quarter of 2024, a 14.5% increase from the 6,297 units sold during the same period in 2023. The HDB noted that this growth was primarily driven by strong market demand and tight supply.
One major factor contributing to the price increase is the tight market supply. The number of units reaching the Minimum Occupation Period (MOP) in 2024 is lower than in 2023, resulting in fewer available resale HDB units on the market. Additionally, despite overall favorable economic conditions, the global economic outlook is affected by ongoing geopolitical instability, which could lead to supply and demand shocks, further exacerbating the tight supply.
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Robust market demand is also a key factor driving price increases. As Singapore's economy continues to grow and residents' income levels rise, the demand for quality housing is increasing. At the same time, the stability and security of the HDB resale market make it a preferred choice for many families, especially in the face of growing global economic uncertainty, as homebuyers tend to favor stable real estate markets.
To address the tight supply, the HDB plans to launch about 19,600 Build-to-Order (BTO) units in 2024. In June alone, the HDB launched over 6,900 units across eight BTO projects in Jurong East, Kallang/Whampoa, Queenstown, Tampines, Woodlands, and Yishun. In October, around 8,500 units will be launched across 14 BTO projects in Ang Mo Kio, Bedok, Bukit Batok, Geylang, Jurong West, Kallang/Whampoa, Pasir Ris, Sengkang, and Woodlands.
These projects will be classified into new categories based on their location: Core, Prime, or Standard areas. HDB developments near amenities such as MRT stations and town centers will be classified as "Core" and "Prime" areas. These units will have stricter resale conditions, such as a 10-year minimum occupation period and a subsidy recovery clause. Standard flats will make up the bulk of public housing supply, with a five-year minimum occupation period and no significant resale restrictions for buyers.
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The government plays an essential role in the real estate market, not only in terms of supply regulation but also in policy guidance. The HDB advises families to manage their finances prudently when purchasing flats, particularly given the rising mortgage interest rates, ensuring they can sustain long-term loan repayments. The government will continue to monitor the real estate market closely and adjust policies as needed to promote market stability and sustainability.
For example, by introducing new BTO projects, the government is actively addressing market challenges and striving to ensure the stability and sustainability of the real estate market. Additionally, the government will closely monitor global economic and geopolitical changes and take corresponding measures to ensure the healthy development of the real estate market.
