SG Morning Highlights | HDB Resale Prices Increase by 0.3% MoM in March, with All Room Types Recording YoY Rent Increases

Advancers / Decliners is 88 to 29, with 66.09 million securities worth S$58.11 million changing hands.

Colliers has reported that prime cap rates in Singapore may experience slight compression when interest rates decrease in the second half of the year, attributed to the substantial amount of capital waiting to be deployed. Despite 11 rate hikes from the US Federal Reserve between March 17, 2022, and July 27, 2023, with rates ranging from 5.25% to 5.50%, Singapore's prime office, retail, and industrial cap rates have remained relatively stable for the past three years. Colliers predicts that cap rates for prime assets will likely stay relatively stable in the near future, with a slight inclination for them to move downward. The report attributed Singapore's fiscal measures implemented during the pandemic, including five budgets in 2020 and close to $100 billion in relief, for stabilizing cap rates in the country.

HDB resale prices in Singapore increased by 0.3% MoM and 6.2% YoY in March, according to data from 99.co and SRX. Both mature and non-mature estates prices increased by 0.5% and 0.6%, respectively, MoM, with all room types recording YoY rent increases in March. 3 Room prices decreased by 0.1% MoM, while 4 Room and 5 Room prices increased by 0.5% and 1.0%, respectively. Executive prices decreased by 0.5% MoM. In March 2024, a total of 2,063 HDB resale flats were transacted, a 3.3% decrease from February 2024 and a 9.8% decrease from the previous year. The highest transacted price for a resale flat in March was $1.5m for a 5 Room flat at Boon Tiong Rd, whilst in non-mature estates, it was $1.2m for an executive apartment at Yishun Ave 4.