HDB Resale Prices Rise, Private Housing Market Remains Steady in Q2 According to preliminary estimates released by the Housing and Development Board (HDB) and Urban Redevelopment Authority (URA), HDB resale flat prices increased by 2.1% in the second quarter of 2023, compared to the previous quarter. This marks the fourth consecutive quarter of price increases in the HDB resale market. The increase in HDB resale prices was broad-based, with all flat types experiencing price gains. 3-room flats saw the largest price increase of 2.8%, followed by 4-room flats at 2.2%. Analysts attribute the rise in HDB resale prices to several factors, including strong demand for housing, a limited supply of flats available for resale, and rising mortgage rates. The ongoing COVID-19 pandemic has also contributed to increased demand for larger housing units, as more people are spending more time at home. In contrast to the HDB resale market, the private housing market remained relatively stable in Q2. URA’s flash estimates indicate that prices of private residential properties, excluding executive condominiums (ECs), increased by a marginal 0.3% quarter-on-quarter. This is a moderation compared to the 1.5% increase in the previous quarter. The private housing market has been supported by a combination of low interest rates and government cooling measures that have helped to contain price growth. However, some analysts expect private home prices to start to decline in the second half of the year as interest rates continue to rise and the economic outlook becomes more uncertain. The HDB resale and private housing market data for Q2 will be released in full on July 25.Property Market Outlook for the Second Half of 2024Property Market Outlook for the Second Half of 2024 Property analysts predict a robust HDB resale market in the latter half of 2024. The absence of a BTO exercise in the third quarter and an SBF exercise in November may drive buyers towards the resale market, according to Lim. This sentiment is echoed by Mohan Sandrasegeran of Singapore Realtors Inc (SRI), who notes that the widening gap between BTO and SBF exercises may influence buyers to explore the resale market. Consumer confidence and purchasing sentiment are expected to remain positive due to economic improvements and increased hiring prospects. However, interest rates remain a concern in the short term. Competition among buyers may also intensify with the release of more BTO apartments in October. Bayshore, Geylang, Woodlands, and Pasir Ris are expected to attract buyers due to their proximity to MRT stations. While new BTO projects may benefit from increased awareness of these areas, resale flats in the vicinity could still benefit from the upcoming BTO launch and shorter Minimum Occupation Period (MOP) of five years. The private housing market is anticipated to rebound in the second half of 2024 driven by major condominium projects such as SORA, The Chuan Park, and Union Square Residences. Global economic recovery and improved hiring prospects may also contribute to increased sales volume. Overall, the property market outlook for the second half of 2024 remains positive, with analysts predicting continued activity in both the HDB resale and private housing markets.HDB resale prices have increased by 2.1% in the second quarter (Q2) of 2023 compared to the previous quarter, according to preliminary estimates released by the Housing and Development Board (HDB) on Friday (July 14). This marks the seventh consecutive quarter of price increases for HDB resale flats. Overall, the HDB resale price index rose from 149.6 in Q1 2023 to 152.8 in Q2 2023. This translates to a quarterly increase of 2.1% and an annual increase of 10.4%. The price increase was broad-based, with all flat types and room types experiencing increases. Four-room flats saw the biggest price increase of 2.4%, followed by three-room flats at 2.3%. Two-room flats and five-room flats both saw price increases of 2.1%. The number of HDB resale transactions also increased in Q2 2023, with an estimated 8,315 units sold, up from 7,632 units sold in Q1 2023. This represents a quarterly increase of 9% and an annual increase of 13.8%. The private housing market, on the other hand, remained “stable” in Q2 2023, according to preliminary estimates released by the Urban Redevelopment Authority (URA) on Friday. The URA’s price index for private residential properties (excluding small units) remained unchanged at 151.3 points in Q2 2023, the same as in Q1 2023. This indicates that private home prices remained stable over the quarter. However, the number of private residential transactions decreased in Q2 2023, with an estimated 4,687 units sold, down from 5,444 units sold in Q1 2023. This represents a quarterly decrease of 13.9% but an annual increase of 10.4%. The URA’s flash estimates for Q2 2023 are based on data collected up to June 2023. The final estimates for Q2 2023 will be released in September 2023.