SINGAPORE – The Housing and Development Board (HDB) is set to launch its largest ever Sale of Balance Flats (SBF) exercise in February 2025, offering over 5,500 units. This comes amid rising prices in the resale market, which have increased for the 18th consecutive quarter.
Details of the Upcoming Launch
According to HDB’s announcement on 25 October 2024, about four in 10 of these SBF units will be completed, while the rest will be progressively completed from 2025 to 2028. The exercise will also feature approximately 5,000 Build-To-Order (BTO) flats across various locations, including Kallang/Whampoa, Queenstown, Woodlands, and Yishun.
- Completed Units: About 40% of SBF flats will be completed.
- Additional Flats: More than 10,000 new flats—including BTO units—will be available for sale.
- Application Reminder: Prospective buyers should apply for an HDB Flat Eligibility letter by 15 December 2024.
Resale Market Trends
In the third quarter of 2024, HDB resale prices surged by 2.7%, an increase from the previous quarter’s 2.3% growth. The Resale Price Index now stands at 192.9, reflecting ongoing strong demand and supply limitations.
- Resale Transactions: Total transactions rose to 8,142, marking a 10.7% increase from the previous quarter.
- Market Insights: Only a small percentage of resale flats sold for over $1 million.
Market Dynamics Explained
Experts attribute the price escalation to a tight housing supply and a growing appetite for larger flats, particularly 4-room and 5-room units. Christine Sun from OrangeTee noted that fewer flats met their Minimum Occupation Period (MOP) requirements in 2024, further squeezing available supply.
Mohan Sandrasegeran from SRI added that the recent price increase is also linked to newer flats commanded a premium in the resale market.
Future Outlook and Government Stance
The government plans to monitor the property market continually and adjust policies as needed to ensure stability. Following recent cooling measures introduced in August 2024—such as tightening loan-to-value limits—the HDB advises potential buyers to be financially prudent.
Moreover, while the demand may dip towards the end of the year due to the festive season, sustained interest in the resale market is expected, particularly for newer flats. It’s crucial for buyers to appreciate market fluctuations and make informed decisions to avoid financial pitfalls.