RESALE flats, which are at least 40 years old, achieved a record 3,042 transactions in the first half of the year, surpassing the previous first-half record of 2,412 units in the year-ago period, data from the Housing and Development Board (HDB) showed.
While the average price of newer flats – which are less than 10 years old – remain higher than that of older flats, the price gap between the two have also narrowed over the past year.
Older flats represented a growing proportion of total resale transactions, making up 22 per cent of the 13,838 transactions in H1 2024. This comes even as local residents recognise the declining leases of older flats.
The rising demand for older flats could be due to policies which have made them more favourable and appealing, real estate company OrangeTee said.
For instance, potential buyers have more flexibility when taking up HDB loans and could enjoy improved living environments because of the Home Improvement Programme.
In Q2 2024, the average price of younger resale flats was 39.4 per cent higher than older ones. In the year-ago period, the gap between the two was 43.1 per cent.
A NEWSLETTER FOR YOU
Tuesday, 12 pm
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
OrangeTee said this could be due to the average price of older resale flats growing at a faster pace of 8 per cent to S$467,940 in Q2 2024, from S$433,341 in the previous year.
Meanwhile, average price of newer resale flats posted a 5.2 per cent increase to S$652,283 from S$619,971, over the same period.
Public housing market momentum
This comes amid increases in resale transactions and price appreciation during the second quarter, as the public housing market continued to gain momentum.
Resale prices increased by 2.3 per cent in the second quarter, with prices in the period for most flat types growing faster than Q1.
Additionally, 14,420 resale flats were transacted in the first half of this year, marking an increase from the 13,493 units in the corresponding period a year ago.
OrangeTee noted that resale flats could have been more accessible to potential homebuyers because of increased housing grants and a more efficient home purchasing process with the introduction of the HDB portal.
Demand for larger resale flats has also remained strong despite the general rise in resale prices, the real estate company said.
Larger-flat transactions also made up for a higher proportion of total sales, climbing 29.2 per cent in H1 2024, from 28.6 per cent in H1 2023.
In the first half of the year, there were 4,214 transactions for five-room and executive flats. This represents a 9.3 per cent increase from the 3,854 units sold in H1 2023.
A growing number of private homeowners, having fulfilled the 15-month wait-out period when they purchase a resale flat, could have contributed to the strong demand for larger flats.
“The current market outlook for the public housing sector is undeniably positive, underpinned by Singapore’s positive economic growth and improved hiring landscape, which have bolstered consumer confidence,” OrangeTee said.
The real estate company expects HDB resale prices to grow by up to 8 per cent this year, given robust demand for resale flats and on-target price growth.
