SINGAPORE - Prices of Housing Board resale flats inched up 1.7 per cent in the first quarter of 2024, rising at a quicker pace than the 1.1 per cent growth in the previous quarter.

This marks the 16th consecutive quarter of price increase since the second quarter of 2020, according to flash estimates released by HDB on April 1.

HDB said the overall 2.8 per cent price growth lodged over the fourth quarter of 2023 and the first quarter of 2024 is the same as the total increase over the second and third quarters of 2023.

It added that the HDB resale market is stabilising, noting that resale prices rose 4.9 per cent in 2023, lower than the 10.4 per cent increase in 2022, and the 12.7 per cent climb in 2021.

Citing an uncertain economic outlook and elevated mortgage rates, HDB said households should continue to be financially prudent in their flat purchases.

Property analysts noted that the first group of private home owners who have served their 15-month wait-out period after selling their homes have been able to buy HDB resale flats from January 2024.

The wait-out period is a temporary measure rolled out in September 2022 to cool the resale market.

Mr Lee Sze Teck, senior director of data analytics at property firm Huttons Asia, said this group of buyers could have driven stronger demand for larger units and led to more flats being sold above the million-dollar mark, pushing prices up.

The number of five-room and larger HDB flats sold in the first quarter of 2024 was 10 per cent higher than in the previous quarter, he added.

PropNex Realty’s head of research and content Wong Siew Ying said a total of 185 flats changed hands for at least $1 million in the first quarter of 2024.

“This is the highest number of million-dollar resale flats transacted on a quarterly basis, led by the record-breaking 74 deals in January,” she said.

However, these flats remain the minority, making up about 2.7 per cent of total transactions in the first quarter, Ms Wong added.

A total of 6,928 HDB resale flats changed hands in the first quarter of 2024, up 5.5 per cent from the same period in 2023, when 6,567 units were sold.

Ms Christine Sun, chief researcher and strategist at property firm OrangeTee Group, attributed the rise to more first-time buyers opting to purchase resale flats due to less frequent Build-To-Order (BTO) sales exercises.

“It is uncommon for sales in the first quarter to exceed those of the previous quarter. During the first quarter of most years, sales tend to be slow due to the Chinese New Year festivities and March school holidays,” she said.

From 2024, BTO flats will be offered across three sales exercises, in February, June and October, down from the previous four launches a year.

The Sale of Balance Flats exercise, which gives applicants a chance to apply for balance flats from earlier BTO sale exercises, will happen once a year. Such launches previously took place twice yearly.

The only launch in 2024 took place in February.

The authorities have pledged to launch 100,000 BTO flats from 2021 to 2025. As at February 2024, more than 67,000 BTO flats have been launched.

HDB plans to launch about 19,600 BTO flats in 2024. In February, it offered more than 4,100 flats across seven BTO projects in Bedok, Queenstown, Choa Chu Kang, Hougang, Punggol and Woodlands.

In June, it will roll out about 6,800 BTO flats in Jurong East, Kallang/Whampoa, Queenstown, Tampines, Woodlands and Yishun.

It advised home seekers to apply for an HDB Flat Eligibility letter by May 15, so that they can take part in the upcoming BTO exercise.

ERA Singapore chief executive Marcus Chu said the BTO launch in June could draw demand away from the resale market, as flats in popular locations such as Tanjong Rhu and Holland Village will be on offer.

“It will also be the final sales launch before the reclassification of flats into Prime, Plus and Standard flats,” he said.

From the October exercise, BTO units in choicer locations will fall under the Prime and Plus categories, which come with stricter resale conditions such as a 10-year minimum occupation period and a subsidy clawback.