To no one’s shock, resale HDB prices rose steadily in 2023 despite HDB’s new HFE requirements, the ABSD rate hike, high interest rates, and increasing world conflict. Will HDB prices continue to rise in 2024? Here’s what you can expect.
2 factors that affected the Singapore property market in 2023
HDB’s new HFE requirement
The introduction of the new HDB Flat Eligibility (HFE) letter greatly impacted the buying and selling process for current and aspiring HDB owners.
It streamlined the eligibility assessment process for HDB buyers. With a single application, you will be able to know if you’re eligible to buy a BTO or resale HDB flat, receive a CPF housing grant, and/or take up a HDB housing loan.
However, while this makes the process simpler, it also takes longer. So HDB sellers might be faced with a reduced pool of ready buyers.
15-month waiting period for condo sellers looking to buy HDB
There was another property cooling measure implemented in September 2022 that greatly impacted condo owners aged 55 years old and below.
The idea here is that when you sell a condo, you’re more likely to realise a much bigger cash windfall and therefore more willing to pay for higher Cash Over Valuation (COV) for a HDB flat. As a result, resale HDB prices increase significantly, pricing out the usual HDB buyers.
To stabilise the market, condo sellers are now subject to a 15-month waiting period before they are eligible buy a HDB flat.
Most of these condo sellers turned to rent a home instead, using a bulk of their cash proceeds to pay for rent and reducing the likelihood of them paying a huge COV for their next HDB purchase. (This could thus be another reason for the sky-high rental rates in 2023. You can read more about the condo rental market and what we expect to see in 2024 here.)
HDB market trends in 2024 to look out for
We expect to see smaller price growth in 2024 with the current property cooling measures in place and if high interest rates persist.
Average Resale HDB Prices and Transaction Volume in 2023
Source: Ohmyhome Research
So if you’re looking to buy a HDB flat, 2024 is the perfect time for you to enter the market. You don’t want to miss this golden opportunity as, historically, property prices tend to trend upwards after a period of stability.
Sell and buy in 2024? Time the market with our Super Agents
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