More than 5,500 Sale of Balance Flats (SBF) units will be offered in February 2025, the Housing and Development Board (HDB) said on Friday (Oct 25).

This represents the largest SBF exercise, according to HDB, with about four in 10 to be completed units, while the remaining units will be completed progressively from 2025 to 2028There will be more than 10,000 new flats for sale next February, including about 5,000 Build-to-Order (BTO) flats in Kallang-Whampoa, Queenstown, Woodlands and Yishun.

More details on the SBF and BTO flats on offer will be shared when the sales exercise is launched.

RESALE PRICES

The prices of HDB resale flats rose 2.7 per cent in the third quarter of 2024, an increase from the 2.3 per cent rise seen in the previous quarter.

The Resale Price Index (RPI), which reflects general price movements in the resale market, was 192.9 for the third quarter, up from 187.9 in the previous quarter, according to data released by HDB.

Resale transactions also rose by 10.7 per cent, from 7,352 cases in Q2 to 8,142 cases in Q3.

The increase in the third-quarter resale prices and volume was "driven by a strong broad-based demand, as well as some supply tightness in the market with fewer new flats meeting the minimum occupation period (MOP) in 2024 as compared to 2023", said HDB.

The number of resale transactions in the third quarter of 2024 was also 21.6 per cent higher compared to the same period in 2023.

HDB added that Q3 resale transactions that have surpassed the million-dollar mark continued to make up a small proportion of total resale transactions.

Ms Christine Sun, chief researcher and strategist at OrangeTee, noted the 2.7 per cent figure in the third quarter of 2024 represented the fastest growth rate in prices since the second quarter of 2022, when prices rose by 2.8 per cent.

"The recent escalation in housing prices can be attributed to the tight housing supply. The number of flats obtaining the MOP dropped substantially by nearly 50 per cent, from 53,902 units in 2021 and 2022 to 27,501 units from 2023 to 2024," she said.SRI's head of research and data analytics Mohan Sandrasegeran largely attributed the uptick in Q3 resale prices to a growing proportion of transactions involving larger flat types, particularly 4-room and 5-room flats.

Noting a steady rise in demand for such flats, he said: "As buyers increasingly favoured these larger units, their higher resale values likely played a significant role in pushing up overall market prices."

Growing demand for newer flats has also contributed to the overall price increase, Mr Sandrasegeran said.

"Flats with leases commencing from 2013 onwards have seen higher price gains due to their newer age and better condition, which continue to command a price premium," he said.

"The combined effect of increased demand for larger homes and the rising value of newer flats boosted resale prices in 3Q 2024."

On the 8,142 resale transaction cases recorded in the third quarter of 2024, Ms Sun noted that "this is the highest quarterly sales since 8,433 units were sold in Q3 2021".

"As private property prices remain elevated, the increased demand could be driven by more people upgrading within the same housing segment, from smaller resale flats to larger ones," she added.

"More private home downgraders may have also opted to buy HDB resale flats for their affordability."

Mr Eugene Lim, key executive officer at ERA Singapore, said the increase in transaction volume was "likely driven by some buyers shifting to the resale HDB market".

These buyers include unsuccessful June BTO applicants, those seeking centrally located flats without new restrictions and some HDB upgraders priced out of the private market, he said.

"In addition, the reclassification of BTO flats has introduced new resale restrictions, which may have discouraged some homebuyers from purchasing a Prime or Plus BTO flat. These buyers may have chosen to enter the resale market instead," Mr Lim added.

CNA