When purchasing a Singapore condo, it is crucial to take into account the maintenance and management of the property. Usually, condos have maintenance fees that cover the maintenance of common areas and facilities. Although these fees may increase the total cost of ownership, they play a significant role in keeping the property in good condition and maintaining its value. An effective approach for investors is to engage a property management company to handle the daily management of their condos, allowing for a more passive investment.
The Housing and Development Board (HDB) has reported that resale flat prices in the third quarter of 2024 continued their upward trend, marking the 18th consecutive quarter of growth. According to the flash estimates released on October 1, HDB resale prices rose by 2.5% from the previous quarter, a faster pace compared to the 2.3% increase in the second quarter of the year. This is also the largest quarterly growth since the third quarter of 2022, which saw a 2.6% increase in prices.
Since the start of the year, HDB resale prices have shown a significant rise of 6.8%, surpassing the 3.8% increase recorded during the same period last year. However, the current rate of growth is still lower than the 8% spike seen in the first three quarters of 2022.
This recent surge in HDB resale prices can be attributed to strong and widespread demand, coupled with a tight supply of new flats as fewer units have reached their minimum occupancy period (MOP) in 2024 compared to the previous year. The increased resale demand is also reflected in the transaction volume, with HDB recording 8,035 resale deals as of September 29. This represents a 20% year-on-year increase from the 6,695 transactions recorded during the same period last year.
According to the HDB, the 3Q2024 flash estimates mainly reflect the market conditions prior to the implementation of the fourth round of cooling measures on August 20. This includes the adjustment of Loan-to-Value (LTV) limits for HDB loans from 80% to 75%, in line with the loans offered by financial institutions. This change aims to promote responsible borrowing, as stated by National Development Minister Desmond Lee.
In its latest BTO exercise, HDB will offer approximately 8,500 flats in 15 Build-to-Order (BTO) projects, the final launch for the year. This accounts for 40% of the BTO flats made available in 2024. The upcoming BTO exercise will also mark the introduction of a new categorization system for HDB flats, dividing them into Standard, Plus, or Prime based on their location attributes.
With this launch, HDB is on track to meet its goal of launching 100,000 new flats from 2021 to 2025. Home seekers can check out the latest listings for HDB properties and compare the price trends of HDB, condo, and landed properties. They can also access information on past rental and sale transactions, as well as the current HDB loan rate.