Launches Singapore - Singapore witnessed a surge in HDB flat owners upgrading to private housing in 2024, driven by moderating mortgage rates and a significant price disparity between resale HDB flats and private homes. PropNex data reveals 5,420 new and resale non-landed private homes were purchased by HDB residents, a 7.1% increase from 2023, rebounding from a sharp decline in 2023.
Singapore's HDB Upgraders Flock to Private Housing in 2024
This trend was particularly pronounced in suburban areas, where HDB upgraders sought larger resale private properties at more affordable prices. The renewed buying appetite, fueled by lower interest rates in late 2024, is prompting developers to ramp up launches in 2025.
The suburban market, a key target for HDB upgraders, is expected to see over 5,600 new condominiums and Executive Condominiums (ECs) launched in 2025, according to OrangeTee Group. This represents approximately 43% of the projected 12,973 new units island-wide, nearly doubling the 2024 launch figures.
Overall, the private residential market saw a 12.7% increase in transactions in 2024, with 18,561 units sold, according to URA Realis data. Purchases by those with private addresses also rose, albeit at a smaller 5.8% increase, to 11,043 units. PropNex anticipates the proportion of private home purchases by HDB residents in 2024 to exceed 30%, aligning with historical trends.
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The ease of upgrading was further enhanced by the substantial growth in resale HDB flat prices, which outpaced private home price increases. Resale HDB prices rose by 9.7% in 2024, compared to a 3.9% increase in private residential property prices. This price divergence made upgrading more financially viable for many HDB owners.