Private downgraders and first-time buyers drive HDB resale price spike

Experts predict a 3%-5% uptick in resale prices. 

Real estate experts predict HDB resale flat prices to further increase as demand from first-time homebuyers and private homeowners downsizing from private properties grows.

Based on flash estimates, HDB resale prices rose faster in 1Q24, increasing by 1.7% QoQ and 5.7% YoY.

“There has been a surge in demand for resale flats as more first-time buyers chose to purchase from the secondary market instead of waiting for the BTO sales launches,” OrangeTee said.

“In addition, an increasing number of private property owners have now completed the mandatory 15-month wait-out period implemented in September 2022 for those looking to downgrade to a resale flat,” it added.

Huttons shared a similar sentiment, saying: “In January 2024, the first wave of ex-private property owners who were observing the 15-month wait-out period to buy 5-room and larger flats entered the market. Based on caveats lodged, the volume of 5-room and larger flats in 1Q 2024 were higher than 4Q 2023 by almost 10%.”
 
“The stronger demand for 5-room and larger flats and the record number of million-dollar flats in 1Q 2024 saw their prices appreciate by a faster pace and pushed up the overall prices of resale flats,” Huttons added.

For 2024, OrangeTee expects prices to increase by 5%, whilst Huttons predict a 3%-5% uptick.