OUTLOOK FOR THE REST OF 2024
Property analysts say that the launch of BTO flats later this year could draw demand away from the resale market while some believe that it may see more transactions because of it.
HDB will offer about 6,800 Build-to-Order (BTO) flats in Jurong East, Kallang/Whoampoa, Queenstown, Tampines, Woodlands and Yishun in June.
“We anticipate that the June BTO sale launch could draw demand away from the resale market,” said Mr Chu.
“This is so as the June BTO sales launch largely focuses on popular mature estates and it will be the final sales launch before the reclassification of flats to prime, plus, and standard flats.”
However, Mr Lee said the resale market may see more transactions as unsuccessful applicants for the sole Sale of Balance Flats (SBF) exercise in 2024 may turn to the resale market.
“There will be more mass market launches for the rest of 2024 and HDB upgraders might sell their flats so that they do not need to pay ABSD (additional buyer’s stamp duty),” he added.
Analysts, however, expect the HDB resale market to “remain stable” this year. Mr Lee said resale flat prices are likely to stabilise in the range of 3 per cent to 5 per cent in 2024, while PropNex’s head of research and content Wong Siew Ying added they are projected to rise at 5 per cent to 6 per cent.
For private property prices, analysts expect prices to increase at a steady rate.
“We foresee a resurgence in buyers’ interest with several highly anticipated new home launches scheduled over the next few months,” said Mr Chu, noting that forecasted interest rate cuts could also help uplift buyers’ interest in the second half of the year.
Similarly, Ms Sun said she expects prices to grow at a steady rate at around 3 per cent to 6 per cent this year as new home demand “may remain resilient as more projects are slated for launch” in the second quarter of 2024.
“If interest rates moderate in the upcoming months, buying sentiment may pick up in the second half of this year. As mortgages become more affordable and financial costs improve, home buyers may feel more motivated to purchase or upgrade their homes,” she added.
“Domestic mortgage rates are expected to remain at levels that are elevated relative to the low levels seen over the past decade,” said HDB, adding that the economic outlook is “subject to uncertainties”, like ongoing geopolitical conflicts.
“The government will continue to monitor the property market closely and adjust its policies as necessary to promote a stable and sustainable property market.”