September 2024 witnessed a significant development in the HDB resale market, with prices continuing their upward trend, surging by 1.8% compared to August. This increase marks a new milestone: HDB resale prices have doubled since 2009.
Despite the ongoing price growth, transaction volumes fell sharply this month. It is a possible consequence of the latest government cooling measures that raised the Loan-to-Value (LTV) limit by 5%.
This article explores the HDB resale price trends and statistics that influenced the market in September, providing essential insights into the performance across various regions and the broader market landscape.
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HDB resale price increased by 1.8% in September 2024
According to the SRX Property Price Index for HDB Resale, the market saw a price increase of 1.8% this month, marking another robust month for property prices. With the price index reaching 200.0, this means HDB resale prices have officially doubled since 2009.
Compared to August 2024, property prices in Mature Estates increased by 2.3%, while prices in Non-Mature Estates increased by 1%. In terms of room types, 3-room prices increased by 2.3%, 4-room prices increased by 2.3%, 5-room prices increased by 1.3%, and Executive prices increased by 0.3%
This price surge in September follows a broader trend that has characterised 2024. In addition to the month-on-month 1.8% increase, prices across all room types and estates have risen significantly over the past year. On a year-on-year basis, the overall price increase reached 10% compared to September 2023, with notable gains across various flat types and regions.
Here is the breakdown of the year-on-year increase:
- 3-room flats saw a 9.7% year-on-year increase, as buyers sought affordable housing options, especially younger couples and smaller families.
- 4-room flats recorded an 11% rise year-on-year, confirming their status as the most popular choice for families.
- 5-room flats saw an 8.6% price hike, with larger families and upgraders continuing to drive demand.
- Executive flats experienced an 8.2% year-on-year increase, reflecting the steady demand for larger units.
Furthermore, both Mature Estates and Non-Mature Estates saw substantial year-on-year price increases, with prices in Mature Estates rising by 9.2% and those in Non-Mature Estates by 10.3%, underscoring the widespread demand across Singapore.
Additional reading: August 2024 HDB resale market: 0.5% price increase, 14.6% drop in transaction volume, and fewer million-dollar flats
A significant drop of 14.9% in HDB resale transaction volume
Despite the remarkable price growth, the volume of transactions in September 2024 dropped significantly. A total of 2,217 HDB resale flats were sold in the month, a 14.9% decline from August 2024.
This decrease could be partly attributed to the government’s cooling measures, particularly the LTV adjustment, which has made it harder for buyers to secure larger loans. Additionally, potential buyers may be exercising caution in light of rising interest rates and affordability concerns.
3-room flats accounted for 25.8% of the total transactions, remaining a popular choice among smaller households and first-time buyers. 4-room flats continued to dominate the market, making up 43.1% of the total volume, underlining their broad appeal.
5-room flats represented 24.5% of transactions, indicating sustained interest in larger flats. Executive flats, on the other hand, made up only 6.6% of the volume, reflecting the limited supply but ongoing demand for these more spacious units.
By estate, Non-Mature Estates accounted for 60.5% of transactions, while Mature Estates contributed the remaining 39.5%. This division suggests that many buyers are turning to Non-Mature Estates for more affordable options as prices in Mature Estates continue to rise.
However, when compared to last year, the market still shows resilience. Year-on-year, the resale volume in September 2024 was 11.6% higher than in September 2023, reflecting the sustained demand for HDB resale flats. The dip in monthly volumes, while notable, may be a temporary reaction to policy changes rather than a long-term decline.
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106 units of million-dollar flats transacted showed a steady market
The market for million-dollar HDB flats remained resilient in September 2024, with 106 such flats transacting during the month, slightly up from 105 units in August. These high-value transactions represented 4.8% of the total HDB resale volume, a marginal increase from the previous months, indicating that demand for premium, well-located, and larger HDB flats remains steady.
Notably, Kallang/Whampoa led the charge, recording 20 million-dollar flat sales, followed by Queenstown with 13 units, and Bukit Merah and Toa Payoh with 12 units each. Other estates like Ang Mo Kio, Geylang, Bishan, and Jurong East also recorded million-dollar transactions, reflecting the widespread distribution of these high-value properties.
Buyers appear willing to pay a premium for HDB flats located in prime locations, particularly those that offer unique features such as proximity to MRT stations, larger living spaces, or panoramic views. These factors continue to drive the market for million-dollar HDB flats, even as the broader market adjusts to cooling measures.
The highest transacted price for a resale HDB flat in September 2024 was S$1,580,000 for a 5-room flat at Kim Tian Road in the Tiong Bahru area, a desirable location known for its heritage charm and central proximity. In Non-Mature Estates, the highest price was S$1,100,000 for an Executive flat at Woodlands St. 82, underscoring the demand for spacious homes even in suburban areas.
Additional reading: Did 13 of these HDB resale flats really cross the S$1.5M mark? (Highest psf at S$1,327)
Wrapping up
The September 2024 HDB resale market presents a price-volume dichotomy: soaring prices amid declining transaction volumes. While cooling measures and affordability challenges may be curbing the number of transactions, the sustained demand and limited supply of HDB flats have kept prices on an upward trajectory. The million-dollar flat segment continues to hold strong, reflecting buyers’ willingness to invest in premium properties despite broader economic uncertainties.
What do you think about the HDB resale market trend in September 2024? Share your thoughts in the comments section below or on our Facebook page.
About Ananda Bayu
Ananda has been wrangling Singapore's complex real estate trends into readable bites since 2020. She writes like she's explaining it to a friend over kopi — because who has time for jargon? When off the clock, she’s probably doom-scrolling through cat memes on X, convincing herself it's the highest tier of "creative inspiration".
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