RESALE prices of public housing flats grew 2.3 per cent in the second quarter of this year, data from the Housing and Development Board (HDB) showed.
The rise, announced on Friday (Jul 26), was a notch higher than the earlier estimated 2.1 per cent released on Jul 1.
Price growth picked up pace in the quarter, accelerating from a 1.8 per cent hike during the first quarter. It is also higher than the 1.5 per cent increase in Q2 2023.
Year on year, prices were up 6.6 per cent.
Meanwhile, transaction volumes of resale flats rose 4 per cent in Q2 to 7,352 units, from the 7,068 units in the previous quarter. Year on year, this was a 12.9 per cent increase.
HDB attributed the growth in both resale prices and sales volume to “strong broad-based demand” as well as supply tightness in the market, with fewer new flats meeting the Minimum Occupation this year, as compared to the previous year.
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The agency also pointed out that although overall economic conditions are sound, the global economic outlook is uncertain, given ongoing geopolitical instabilities that could “precipitate global supply and demand shocks”.
“Domestic mortgage rates are expected to remain elevated relative to the low level seen over the past decade,” it added. “Households should exercise prudence in their property purchases and ensure that they can service their mortgages over the long term.”
Growing prices
The HDB towns with the highest median resale price of three-room flats were in the central region at S$520,000, while the lowest was located in Geylang at S$359,400.
For four-room flats, the highest median price was recorded in Queenstown at S$928,000, while the lowest recorded median price was in Jurong West at S$488,000.
For five-room and executive flats, the highest median resale price was in Bishan at S$960,000. The lowest was in Jurong West at S$600,000.
On the rental market front, there were 58,596 HDB flats rented out as at the end of Q2, a marginal increase of 0.4 per cent from Q1.
HDB approved 9,398 cases to rent out the flats, a 1.7 per cent increase quarter on quarter and 2.9 per cent drop year on year.
Based on HDB’s latest data, the highest median rental price was for four-room flats in the central region at S$4,400, while the lowest median rental price was two-room flats in Sengkang at S$2,300.
