Desmond Lee: Property market will remain stable despite HDB and private home prices rising in the first quarter of Q1

Desmond Lee, Minister for National Development in Singapore, said that even though there could be differences between quarters when it is the resale value of private residences and Housing Board properties, the authorities expect that the market will continue to stabilize.

Mr. Lee spoke to reporters during the opening ceremony of Greenfly Allotment Garden, Boon Lay on the 27th of April that the government would be keeping an eye on trends in the coming months.

His remarks come one day after HDB released its most recent resales data as well as private housing data for the quarter that started in of 2024.

The first quarter of 2024 saw HDB apartments for resales were subject to an increase by 1.8 percent which was higher than the previous quarter’s 1.1 percent. According to figures published by the statutory board, it was the 16th quarter of the series of price hikes from the second quarter of 2020.

According to the figures published by the Urban Redevelopment Authority, the cost of residential property for private use rose by 1.4 percent in the quarter’s first.

Season-to-season and quarter by quarter, there will be fluctuations in (HDB Resales) prices. If you examine the trends year-to-year the prices for resales this year were lower than 2022, and 2022 was less than 2022.” Mr. Lee.

HDB price for resales increased by 4.9 percent in 2023. This is less than the 10.4 percent increase in 2022, or the 12.7 percent increase in 2021.

The official said this was due to a variety of reasons, such as HDB being caught up to the construction delays caused by the Covid-19 pandemic and the continued ramp-up of Build-to-Order (BTO).

Between 2021 and 2025, the authorities will begin to launch 100,000 BTO homes. In February there were more than 67,000 BTO homes available for sale.

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The market for private homes has seen an rise.

In the first quarter of 2024 the Government Land Sales Programme is scheduled to provide 5,450 homes for private owners on 10 locations. This is the seventh half-yearly increase in the number of homes available since the beginning of 2021.

The websites on the list will be sold in accordance with the schedule, and without regard to demand.

“We also introduced a number of measures that cooled the market to ensure the market for property as a whole, on both the HDB as well as the private side is in line with economic fundamentals of the market,” added Mr. Lee.

On the 27th of April the 27th, Mr Lee also pointed out a five-room unit within the Design, Build and Sell Scheme project (DBSS) located in ToaPayoh. The project was worth $2 million. It is receiving interest in recent weeks.

In 2005, the program was launched to provide purchasers of flats with higher incomes homes with better design and finishes. But, it was canceled in the year the year 2011. DBSS flats that are constructed on land owned by the government and developed by private developers, were canceled in 2011.

Mr. Lee assured those worried that this was an indication of higher resales values and said that the amount of homes sold for 1 million or more remains only a tiny fraction of the overall volume of resales that take place each year. He also said that the flats in question are usually uncommon or large, and are located on the top floors, close to shopping malls and transport hubs or with other unique characteristics.

In March, 61 units were sold for more than $1 million. Based on the data of real estate websites Singapore Real Estate Exchange (SREX) and 99.co This was just one percent of 2,063 apartments that were resold in the same time frame.

The garden, which Mr. Lee inaugurated in Block 209’s ground floor Boon Lay Place in April it offers individual plots of gardening. This is the 15th garden that has been completed by HDB as well as URA as part of the Lively Places Fund.

Eight gardens are still on the way.

HDB distributed $1.1 million from the fund at the end of March to fund 223 projects, including allotment and community garden roof decks on parking garages with multiple levels as well as large green spaces.