HDB resale flat demand to hold steady: analysts

Resale prices are up for eight months in a row.

Demand for HDB resale flats will likely hold steady in the coming months as more homebuyers turn to the secondary market, according to analysts.

Wong Siew Ying, research and content head at PropNex said a higher transaction volume of HDB resale flats helped support price growth in May. 

Wong said the demand for resale flats will likely remain stable with the ex-owners of private homes set to return to the secondary market after after serving out the 15-month wait-out period.

She said the HDB resale market is also attracting those with more pressing housing needs as well as home seekers who want a more central location but do not wish to be subjected to the tighter conditions of Plus and Prime flats.

Data from 99.co and SRX showed HDB resale prices went up 6% YoY in May to mark its eighth straight month of increase. Wong also highlighted that the 2,513 flats resold last month were the highest number of resale flats in four months or since January’s tally of 2,629 units. 

Mark Yip, CEO of Huttons Asia, said the resale market received “steady interest” last month but transactions will likely dip in June with school holidays starting.

Commenting on higher transaction volume, Yip said those were were not shortlisted in the latest BTO launches may have also turned to the secondary market to find homes.

The sustained price growth of resale flats may have also motivated more homeowners to put their HDB flats up for sale.

“June may see slightly lower transactions because of the school holidays and BTO launches. The HDB resale volume may be between 26,000 to 28,000 flats in 2024. Resale flat prices may end 2024 with more than 5% growth which is faster than the 4.9% growth in 2023,” Yip said.