“HDB resale prices maintained their upward trend in the fourth quarter of 2024 with a 2.6% increase, making it the 19th consecutive quarter of positive growth, based on data released by HDB on 24 January. This brings the total price increase for the year to 9.7%. The quarterly increase is slightly lower compared to the 2.7% rise in the previous quarter. According to Mohan Sandrasegeran, Head of Research & Data Analytics at SRI, the strong growth in resale prices in 2024 can be attributed to the limited supply of flats reaching their Minimum Occupation Period (MOP).” Lee Sze Teck, Senior Director of Data Analytics at Huttons Asia, notes that five-room flats recorded the highest growth in resale prices in the fourth quarter of 2024, with an average increase of 2.2% to $754,097. The Central Area saw the largest increase in prices, rising 25.6% compared to the previous quarter. In contrast, transaction volumes dropped by 21.1% quarter-on-quarter, with 6,424 units sold in the fourth quarter of 2024. This could be due to seasonal factors such as the year-end holidays and festive season, as well as the lower interest rate environment enticing some buyers to look at the private residential and Executive Condominium markets. HDB also launched a record 15 Build-to-Order (BTO) projects in October 2024, offering 8,573 flats under the new location-based classification framework. The BTO sales exercise saw the sale of 1,035 flats priced at $1 million or more, with the majority of sales occurring in mature estates. Looking ahead, around 6,976 flats are expected to reach the end of their MOP in 2025, representing a 41.6% decrease compared to 2024, as a result of fewer BTO flats being completed in 2020 during the pandemic. However, HDB has plans to launch over 25,000 new flats in 2025, with 19,600 BTO flats and 5,500 flats under the Sale of Balance Flats (SBF) exercise planned. This aims to address the ongoing demand for housing, particularly for home seekers looking for a shorter waiting time for a new flat. Sandrasegeran forecasts a 3.5% to 5.5% increase in resale prices for 2025, with a resale transaction volume ranging between 26,000 and 27,000. On the other hand, Lee projects a more optimistic price increase of between 5% to 8% for the year.