Strong demand, tight supply fuel momentum and higher sales volume in public housing market
HOUSING and Development Board (HDB) resale-price growth accelerated in the third quarter of 2024, increasing 2.5 per cent versus the 2.3 per cent booked in Q2.
It was also higher than the 1.3 per cent recorded in the same period last year, HDB flash estimates indicated on Tuesday (Oct 1).
Meanwhile, transaction volumes of resale flats stood at 8,035 units as at Sep 29, up 20 per cent from the same period last year.
Million-dollar transactions continued to account for a small proportion of total resales, and the vast majority of resale flats were transacted at a “much lower price” in the third quarter, said HDB.
The agency attributed the rise in both resale prices and volumes to “strong broad-based demand”, as well as supply tightness in the market with fewer new flats meeting the minimum occupation period this year, compared with the previous year.
HDB added that this also reflects the market conditions prior to the lowering of the loan-to-value limit for HDB loans, from 80 per cent to 75 per cent. This was rolled out on Aug 20 to cool the resale market and encourage greater financial prudence among homebuyers.
“The government will continue to monitor the property market closely and adjust its policies as necessary to promote a stable and sustainable property market,” it said. “Meanwhile, households are strongly advised to exercise prudence in their property purchases as the property market moves in cycles and those who buy high will be hit harder when prices eventually come down.”
