Rebound in HDB Resale Prices and Volumes Continues in May: SRX, 99.co
In May, the Housing and Development Board (HDB) resale market sustained its growth in both prices and volumes, continuing its rebound from the previous month’s recovery after two months of decline.
According to flash estimates from SRX and 99.co released on Wednesday (June 5), resale prices increased by 0.3 percent month-on-month. This growth was driven by a 1.1 percent rise in non-mature estate resale prices, which was slightly offset by a 0.3 percent decrease in mature estate prices.
Eugene Lim, key executive officer of ERA Singapore, pointed out a shortage of inventory in mature estates, making them highly sought after. With prices rising in these areas, “we noticed some buyers turning to non-mature estates that are well-supported by amenities, schools, and transport hubs. Sixty-eight percent of five-room or larger flats were transacted in non-mature estates,” noted Lim.
Price changes varied by room type, with three-room and four-room flats increasing by 0.1 percent, five-room flats surging by 1.6 percent, and executive flats experiencing a 1.1 percent drop from April 2024 levels.
Year-on-year, overall prices rose by 6 percent, with mature and non-mature estate prices growing by 4.8 percent and 6.5 percent, respectively. Five-room flats led the yearly increase with a 6.7 percent rise, followed by four-room flats (6.4 percent), three-room units (5.3 percent), and executive flats (3.9 percent).
In May 2024, 2,513 HDB resale flats were sold, marking a 5.3 percent increase from the previous month and an 11.2 percent rise from May 2023. Four-room units accounted for the largest share of transactions at 43.1 percent, followed by three-room (26.9 percent), five-room (22.8 percent), and executive flats (7.2 percent).
Non-mature estates contributed 59.1 percent of the resale volume, with the remaining 40.9 percent from mature estates. PropNex head of research and content Wong Siew Ying expects demand for resale flats to remain stable as former private homeowners return to the market after serving the 15-month wait-out period. This trend is also supported by buyers with pressing housing needs and those preferring central and attractive locations without the tighter conditions of Plus and Prime flats.
However, Mark Yip, chief executive of Huttons Asia, anticipates a slight dip in transactions in June due to the school holidays and upcoming Build-To-Order launches. He forecasts that HDB resale volumes will range between 26,000 and 28,000 flats for 2024, with prices growing by more than 5 percent, surpassing the 4.9 percent increase in 2023.
In May 2024, 74 resale flats were sold for at least S$1 million, up from 64 units in the previous month, making up 2.9 percent of total resale volumes. The highest price was for a five-room flat on Cantonment Road, sold for nearly S$1.52 million, identified as a unit at The Pinnacle@Duxton, located on the 37th to 39th floors with a remaining lease of over 85 years. This transaction is noted as an all-time high for the development.
In non-mature estates, an executive apartment on Hougang Avenue 6 recorded the top resale transaction value at S$1.11 million. Kallang Whampoa had the most million-dollar resale flat transactions in May with 13 units sold, followed by Bukit Merah (12 units) and Toa Payoh (eight units).
