The private resale condo market in Singapore has hit an all-time high, solidifying its position as a key player in the real estate sector. Despite rising interest rates and the introduction of several cooling measures, the demand for resale homes has surged once again.
According to data from the Urban Redevelopment Authority (URA), the number of resale transactions has shown a marked recovery, with an 11% increase from 7,980 units between January and August 2023 to 8,823 units during the same period in 2024. This turnaround is especially significant given the prolonged slowdown that followed the introduction of the Total Debt Servicing Ratio (TDSR) in 2013.
Between 2013 and 2017, the annual average for resale transactions in the first eight months was just around 5,300 units. Today, the market has recovered significantly. In the first eight months of 2024, resale condos made up a staggering 72% of total private home transactions, compared to 58% during the same period in 2023. By August 2024, resale transactions accounted for 78% of the market.
Looking ahead, the demand for resale properties is expected to remain strong. But who exactly is driving this boom, and which properties are in demand? Let’s explore the key trends from the first eight months of 2024 and compare them to previous years.
Key Factors Driving Demand
In recent years, a surge in housing supply has led to nearly 30,000 private homes being completed. As this inventory grows, more properties become available for resale, providing buyers with a wider array of choices.
With prices for new homes holding steady, many buyers are turning to the resale market, seeking more affordable options. These include leasehold properties or “nearly new” homes, along with older resale condos, which are gaining popularity due to the larger living spaces they offer at attractive prices.
In terms of tenure, leasehold units dominated the 2024 resale market, accounting for 60% of total transactions, with freehold units making up the remaining 40%. Among leasehold properties, condos between 10 and 15 years old were the most sought-after, making up 35% of market share. Meanwhile, newer resale properties under 10 years old comprised 19%, and older condos (30+ years) saw a modest increase in demand, rising from 9% in 2023 to 11% in 2024.
The preference for older condos likely stems from the value they offer in terms of space, with many buyers recognizing the potential of these properties, particularly in suburban areas.
Popular Resale Condos
Resale condos in District 19, which includes Serangoon Garden, Hougang, and Punggol, continue to attract buyers. District 18, covering Tampines and Pasir Ris, is also highly popular.
Among the top resale projects in the suburbs are Treasure at Tampines, The Minton, High Park Residences, The Tapestry, Kingsford Waterbay, and The Garden Residences.
City fringe developments like Stirling Residences, Parc Esta, Jadescape, Sims Urban Oasis, Reflections at Keppel Bay, and The Interlace are also highly sought after.
In the prime districts, luxury projects such as Cuscaden Reserve, The Residences at W Singapore Sentosa Cove, D’Leedon, and The Sail @ Marina Bay lead the way. Several of these projects saw increased sales, thanks to developer promotions.
HDB Upgraders Driving Resale Market Growth
An emerging trend in 2024 is the influx of HDB upgraders into the private resale market. In the first eight months of the year, nearly a third of resale buyers were former HDB owners, marking a 14% increase from 2023, with 2,750 units sold to this group.
Many HDB upgraders favor resale condos for their immediate availability and the fact that they avoid additional buyer’s stamp duty. Furthermore, they can often purchase a resale condo without taking on a significantly larger loan after selling their HDB flats.
The rising prices of HDB resale flats have enabled many owners to upgrade. According to HDB data, 5,036 flats were sold at or above $700,000 in 2024, a notable jump from 3,517 in 2023, and a staggering increase from the 1,057 units sold in 2019.
Additionally, URA data shows that nearly 25% of resale homes bought by HDB upgraders in 2024 were priced above $2 million, with 184 units selling for over $3 million.
However, most HDB upgraders still prefer suburban resale condos, valuing the space and affordability. Popular projects among this group include Treasure at Tampines, High Park Residences, The Tapestry, and The Minton.
Landed Properties Remain in Demand
Even after eight consecutive years of price increases, demand for landed properties continues to be strong. Landed home transactions (excluding strata-landed) rose from 825 units in 2023 to 989 units in 2024, though demand for cluster houses dipped slightly from 167 to 159 units.
Currently, the highest volumes of landed property transactions are in Bedok, Serangoon, Hougang, Bukit Timah, Ang Mo Kio, and Pasir Ris. Popular cluster houses include Hillcrest Villa and Belgravia Villas.
Positive Outlook for the Resale Market
The recent interest rate cuts by the US Federal Reserve are expected to provide a significant boost to Singapore’s property market in the medium to long term, particularly for luxury homes.
Although high-net-worth individuals are generally less affected by interest rate fluctuations, lower borrowing costs can still benefit their broader investment portfolios, potentially freeing up more capital for real estate purchases.
Moreover, the lower mortgage rates may encourage cautious buyers to re-enter the market, as financing a home becomes more affordable.
With fewer new condos set to be completed in the coming years, resale prices are expected to either stabilize or increase. Condo completions (excluding executive condos) have already fallen from 19,968 units in 2023 to around 9,100 units in 2024. This figure is projected to decline further to 5,300 units in 2025 before rising to 7,800 units in 2026.
As a result, resale homeowners stand to benefit from the tightening supply and favorable credit conditions, barring any major economic disruptions.
