In recent years, the number of million-dollar HDB flats has surged. Starting from 46 units in 2017, this figure has since risen to 470 units in 2023, marking a significant uptick in the number of resale units hitting this notable price milestone.
While some homeowners living in prime areas may view this as a win, this trend has ultimately sparked greater concerns about the overall continued growth and sustainability of Singapore’s housing market. So, the million-dollar question is: “Can homebuyers expect to see healthy growth in the local market come 2024?”
If current signs are any indication, the likely answer is “yes”. Owing to cooling measures, such as the Additional Buyer Stamp Duty (ABSD) hike implemented in April last year, 2023 saw private home prices inch up at a more gradual pace of 6.7% compared to 2022 (8.6%) and 2021 (10.6%).
A similar observation can be made about the resale HDB market which saw prices rise by 4.8% in 2023, a rate that is more restrained than growth figures recorded for 2022 (10.4%) and 2021 (12.7%).
Be that as it may, ERA expects continued market growth across all housing segments in 2024.
This year, it is predicted that new home prices will increase by 4 to 6%, with transaction volumes reaching 7,000 to 8,000 units sold.
Likewise, it is forecasted that the resale private home market will see a 4- to 6-percentage point increase in prices, with as many as 12,000 to 1,3000 resale units and 1,200 sub-sale units being transacted.
Finally, we can expect to see HDB resale prices rise by 3 to 5%, along with a projected 26,000 to 27,000 units being sold in 2024.
Taken as a whole, these predictions should be viewed in a positive light by both homebuyers and homeowners as they point towards the possibility of future price appreciation, increased equity, and an overall healthy property market that inspires confidence for those keen on entering.
Disclaimer
This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers.
For avoidance of doubt, ERA Realty Network and its salespersons accept no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval.