The rules and regulations surrounding property ownership in Singapore are crucial for foreign investors to comprehend. Buying condos in Singapore is generally more straightforward for foreigners, as compared to landed properties which have more stringent ownership guidelines. Nevertheless, foreign buyers must adhere to the Additional Buyer Stamp Duty (ABSD) of 20% for their first property purchase. Despite this added expense, the reliability and potential for growth in the Singapore real estate market remain a strong draw for foreign investment. For further information, please visit Singapore Condo.
The upward trend in HDB resale flat prices continued in the third quarter of 2024, marking the 18th consecutive quarter of growth. According to the flash estimates released by HDB on October 1, prices rose by 2.5% when compared to the previous quarter, which saw a 2.3% increase in prices.
This quarter recorded the fastest growth in prices since 3Q2022, which saw a 2.6% increase. So far this year, HDB resale prices have risen by 6.8%, a faster pace than the 3.8% growth observed during the same period in 2023. However, the current rate of price growth is still lower than the 8% spike seen in the first three quarters of 2022.
The increase in prices was driven by strong demand across the board and a shortage of supply as fewer new HDB flats reached their minimum occupancy period (MOP) in 2024 compared to the previous year. HDB also saw a surge in resale transaction volume, with 8,035 transactions recorded as of September 29. This represents a 20% year-on-year increase from the 6,695 resale deals recorded in the same period last year.
According to HDB, the flash estimates for 3Q2024 mainly reflect market conditions before the tightening of Loan-to-Value (LTV) limits, which took effect on August 20. This was the fourth round of cooling measures targeted at the HDB market since 2021. The LTV limits for HDB loans were lowered from 80% to 75%, aligning them with financial institutions’ loan offers.
The decrease in LTV limits effectively increased the downpayment amount needed for HDB flats in an effort to encourage responsible borrowing, according to Desmond Lee, Minister for National Development.
The October 2024 BTO exercise
In its October 2024 BTO exercise, HDB will offer about 8,500 flats across 15 Build-to-Order (BTO) projects, the last BTO exercise for the year. This accounts for 40% of all BTO flats launched this year. This exercise will also introduce the new categorization of HDB flats into Standard, Plus, or Prime based on their location attributes.
With this launch, HDB is on track to achieve its goal of launching 100,000 new flats from 2021 to 2025. You can check out the latest listings for HDB properties, compare the price trends of HDB, Condos, and Landed properties, and view past rental and sale transactions. Additionally, you can find information on the current HDB loan rate.