HDB resale flat prices up 2.3% in Q2, with more units sold

Demand fuelled by fewer new flats meeting minimum occupation period

- Esther Loi

Prices of Housing Board resale flats climbed 2.3 per cent from April to June, at a faster pace than the 1.8 per cent growth in the first quarter of 2024.

Data released by HDB on July 26 showed that this was the fastest rate of growth since the fourth quarter of 2022, when prices rose by 2.1 per cent.

A total of 7,352 resale flats were sold in the second quarter of 2024, up from 7,068 in the first quarter.

HDB said the increase in resale prices and volumes was driven by strong demand, and tighter market supply arising from fewer new flats meeting the minimum occupation period (MOP) in 2024 compared with 2023.

It added that million-dollar flat transactions were just a small proportion of total resale transactions in the second quarter of 2024, with the vast majority of resale flats sold at much lower prices.

HDB urged home buyers to exercise prudence in their property purchases, with the uncertain global economic outlook caused by ongoing geopolitical instabilities and elevated domestic mortgage rates.

Its comments come after real estate company ERA announced on July 22 that a five-room flat in Margaret Drive had sold for a record-breaking $1,725,888, and set a new benchmark in the HDB resale market.

Ms Christine Sun, chief researcher and strategist at property firm OrangeTee Group, said the number of resale transactions for the first half of 2024 has hit 14,420, marking the highest half-year sales since the first six months of 2021.