Why homebuyers are increasingly opting for older HDB resale flats

Old resale flats achieved a record 3,042 transactions in H1 2024.

Homebuyers are increasingly turning to older HDB resale flats, driving record sales and price growth that surpasses newer properties. 

In Q2 2024, homebuyers showed strong interest in older HDB resale flats in Bedok (232 units), Ang Mo Kio (200 units), Kallang/Whampoa (111 units), Bukit Merah (110 units), and Toa Payoh (109 units). By type, older 3-room flats topped the sales with 977 units, followed by 4-room flats (378 units) and 5-room flats (174 units).

Data from OrangeTee showed that resale flats, particularly those at least 40 years old, achieved a record six-month sale in H1 2024, with 3,042 transactions. The figure also surpassed the H1 2023 record of 2,412 units.

With the first half of 2024 accounting for 64% of the 4,750 units sold in 2023, OrangeTee projects that the total number of transactions for older flats will reach a new high this year.

Additionally, OrangeTee observed that the proportion of older flats in the total resale transactions has been growing.

In H1 2024, older flats accounted for 22% of the 13,838 transactions, marking a new high.

“The rising demand could be attributed to policies which have made older flats more favourable. For instance, buyers can now take an HDB housing loan of up to 80 per cent Loan-to-Value (LTV) limit if the remaining lease of the flat can cover the youngest buyer to the age of 95. This is even if the flat has less than 60 years left on its lease,” OrangeTee explained.

“Moreover, the government has implemented the Home Improvement Programme (HIP) to revitalise many older flats, resulting in a significant improvement to the living environment and the quality of life for numerous residents. This initiative has made these older flats more appealing,” OrangeTee added.

As newer flats remain substantially more expensive, OrangeTee expects the demand for older flats to keep increasing.