Expert says HDB resale prices could climb even further, forecasting 7-8% growth in 2024

SINGAPORE: Property consultancy OrangeTee has adjusted its forecast for HDB resale prices in 2024, predicting an increase of 7% to 8%.

This latest outlook is based on a continued strong demand for resale flats, coupled with positive economic indicators and growing consumer confidence.

According to OrangeTee, the buoyant performance of the HDB resale market is primarily driven by the ongoing positive economic growth and enhanced hiring conditions, which have bolstered consumer sentiment.

As a result, demand for resale flats is expected to remain robust throughout the remainder of the year. The consultancy also noted that the upcoming release of new flats in October is unlikely to exert a significant impact on the resale market.

The new flats, mostly categorized as Plus flats, will come with a 10-year Minimum Occupation Period (MOP) and stricter resale conditions, limiting their immediate effect on the resale market.

However, OrangeTee highlighted that certain resale flats might still benefit from the new Build-To-Order (BTO) sales launch.

This is due to the increased awareness and interest in areas surrounding the new developments, as well as the shorter five-year MOP associated with these new flats.

Recent months have indicated a noticeable trend of million-dollar HDB resale flats, sparking concerns about affordability, particularly for Singaporeans already dealing with a high cost of living.

While the growth in high-value resale flats points to the strength and attractiveness of the public housing sector, it also raises questions about accessibility for average buyers.

The rising prices could potentially exacerbate affordability issues, creating challenges for prospective homeowners navigating the current housing landscape.

Overall, while the outlook for HDB resale prices remains positive, the dynamic between high-value properties and overall market accessibility continues to be a critical aspect for both buyers and policymakers to consider. /TISG

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