SINGAPORE: Some people believe that home costs can only increase. It’s not difficult to understand why Housing and Development Board ( HDB) resale prices increased by almost twice in 2024 from the 4.9 % increase in 2023. The private accommodation business, while more subdued, however grew by 3.9 per share.
The need for selling HDB flats even remained solid, with transaction levels increasing by 8.28 per share, totalling 27, 889 revenue.
The government has taken action to stop the HDB industry from overheating many times. The government most recently increased the loan-to-value ( LTV ) ratio for HDB loans from 80 % to 75 %, lowering the maximum amount that home buyers can borrow from HDB.
This was slightly increased a year later, when it increased the foreigners ‘ ABSD (additional buyer’s stamp duty ) to 60 %. This cooling determine properly curbed foreign capital flows, leading to a sharp drop in new secret non-landed home revenue, which averaged 6, 500 units per year from , 2022 to 2024, compared with 12, 820 new sales in 2021.
The government has also taken steps to ease demand pressures in the Build-To-Order ( BTO ) market, making a commitment to launch , 100, 000 flats between 2021 and 2025 to address housing shortages.
In October 2024, it introduced a major change to the BTO classification system, and increased subsidies to ensure low- and middle-income families could afford” Plus” and” Prime” flats in more desirable locations.