Unpacking Singapore’s biggest property news of 2024 and what to expect for 2025

The past year has been an eventful one for the property market in Singapore. Significant changes, cooling measures, and evolving trends have reshaped how people view real estate.

This year, you’re likely to see even more developments, so if you haven’t yet, do check out our year-end review of last year’s market. It’ll help you better prepare for the year as you re-enter the market after the holiday lull. 

Table of contents

    • More million-dollar HDB resale transactions in 2024
    • Singapore’s most expensive HDB resale yet: S$1.73M at SkyOasis @ Dawson
    • S$2M HDB listings spark public outrage
    • The new BTO classifications finally rolled out
    • Singles gain access to Mature Estates
    • Three Federal Reserve Rate cuts
    • EHG Grant increases and tighter LTV limits
    • 2025 prospects for the property market
      • Rising rental prices
      • Potential interest rate cuts
      • Sustained demand for larger HDB units
      • Investor behaviour in Condominium launches

More million-dollar HDB resale transactions in 2024

One of the standout trends this year has been the significant increase in million-dollar HDB transactions. While this trend already gained traction in 2023, it’s been even more pronounced in 2024, with the volume of high-value flats doubling compared to the previous year. This surge has been driven by a mix of persistent buyer preferences, the effects of cooling measures, and the distinct characteristics of some HDB properties.

Popular towns like Kallang/Whampoa, Toa Payoh, and Bukit Merah have seen a noticeable uptick in such transactions. Buyers, particularly condominium downgraders and high-income dual-income families, continue to prioritise convenience and uniqueness over the prestige of private property ownership. 

Read more: 2024 Recap: HDB resale prices increased 9.8% with million-dollar flats doubled over the year

Singapore’s most expensive HDB resale yet: S$1.73M at SkyOasis @ Dawson

skyoasis @ dawson 1.7m ath
Image credit: Google Maps

In June 2024, a record-breaking sale took place. A 5-room HDB flat at SkyOasis @ Dawson on Margaret Drive fetched S$1.73 million, making it the priciest HDB resale transaction to date. This 1,195 sqft flat, located on the 45th floor, is a corner unit configuration with 96 years remaining on its lease. Sold at S$1,444 psf, the unit’s spacious layout and high ceilings were major attractions.

The buyers, a Singaporean family with young children, were drawn to the property’s strategic location and modern amenities. The seller had initially listed the flat at S$1.838 million, but after a brief stint on the market and some bidding, the property was sold for S$1.725 million. 

This sale raised questions about whether it was an isolated case or indicative of broader market dynamics. Given the lack of subsequent transactions at similar levels and the recent S$1.6M sale, this sale is likely an outlier rather than a trendsetter.

Read more: New HDB ATH record set: S$1.73M for a 5-room SkyOasis @ Dawson unit

S$2M HDB listings spark public outrage

the peak @ toa payoh first s$1.6m hdb resale
Image of The Peak @ Toa Payoh, one of the units that was listed for S$2 million.

This year also saw controversy when two HDB flats were listed for S$2 million each. One listing involved two adjacent 5-room flats in Sengkang marketed as a jumbo flat, while the other was a 5-room unit in Toa Payoh. Both listings faced criticism for being unrealistic and misleading.

In Sengkang, the so-called jumbo flat at Block 314C Anchorvale Link was advertised as having 6 bedrooms and 4 bathrooms. Authorities clarified that the listing was misleading because the flats cannot be legally combined and sold as a single unit. The listing was promptly removed, and investigations are ongoing.

Meanwhile, the Toa Payoh flat at The Peak@Toa Payoh was flagged for not having the requisite intent-to-sell registration with HDB. At S$2 million, the price was nearly half a million dollars above the area’s highest transaction, drawing sharp criticism for its inflated valuation.

Read more: The S$2M HDB listing in The Peak@Toa Payoh – ambitious or inevitable?

The new BTO classifications finally rolled out

October 2024 marked the debut of a revamped BTO classification system, replacing the previous categories of mature and non-mature estates. Now, flats are classified as Prime, Plus, or Standard, offering clearer distinctions for buyers.

  • Standard Flats: These are the most common and will be located in various estates, including less central areas. They come with a shorter 5-year Minimum Occupation Period (MOP) and are expected to form the bulk of HDB’s BTO supply.
  • Plus Flats: Found in desirable locations such as town centers or near public transport, these flats come with additional subsidies to enhance affordability. Due to their prime locations, they are likely to be in high demand.
  • Prime Flats: Located in city centers or highly desirable towns, these flats carry higher price points but are kept affordable through subsidies. However, stricter resale restrictions and a 10-year MOP apply to these top-tier options.

Read more: New HDB BTO classification: Know the difference between Standard, Plus, and Prime flats

Singles gain access to Mature Estates

An exciting development for singles arrived with the October 2024 BTO launch. Singles are now eligible to apply for 2-Room Flexi flats in mature estates such as Bedok and Kallang/Whampoa. Previously, they were limited to non-mature estates.

HDB has reserved up to 65% of 2-Room Flexi flats (not designated for seniors) for singles, particularly first-time applicants earning up to S$7,000 per month. Eligible singles can also benefit from the Enhanced CPF Housing Grant (EHG), receiving up to S$60,000 to reduce the cost of their flat purchase. For resale flats, additional financial assistance is available through the CPF Housing Grant (up to S$40,000) and the Proximity Housing Grant (up to S$15,000).

This expanded eligibility provides more opportunities for singles to secure flats in popular areas, making the housing market more inclusive.

Read more: HDB Grants for singles – The ultimate guide on BTO and HDB Resale Grants

Three Federal Reserve Rate cuts

Last year, the U.S. Federal Reserve implemented its first rate cuts in four years. On September 18, a half-percentage-point reduction was announced, aimed at reducing borrowing costs and stimulating the economy. Two subsequent cuts followed:

  • November 2024: A 25-basis-point cut.
  • December 2024: Another 25-basis-point reduction, bringing the federal funds rate to 4.25% to 4.5%.

Looking toward 2025, the Fed has adopted a more cautious stance, projecting only two additional rate cuts for the year instead of the previously expected four.

Need a detailed dive in on how the Fed rates cuts could affect you? Read here: How the US Federal Reserve’s interest rate cut could impact the Singapore property market



EHG Grant increases and tighter LTV limits

In August, enhancements to the EHG were announced. Families and singles can now receive up to S$120,000 and S$60,000, respectively, compared to the previous caps of S$80,000 and S$40,000. This boost aims to make HDB flats more accessible for first-time buyers.

However, the Loan-to-Value (LTV) limit for HDB housing loans was lowered from 80% to 75%. This tightening reflects efforts to ensure sustainable borrowing and curb speculative activities in the market. While the increased grants provide significant financial relief, the stricter LTV limits may require you to prepare larger down payments when purchasing a flat.

Read more: 6 key things to know before applying for the October 2024 BTO

2025 prospects for the property market

Now that we’ve unpacked 2024, what’s packing for the property market this year?

Rising rental prices

Rental prices are expected to climb further due to a reduced supply of newly completed private residential units. With only 6,316 units anticipated to reach Temporary Occupation Permit (TOP) status in 2025, competition in the rental market could intensify.

Potential interest rate cuts

Global economic conditions may also play a pivotal role, particularly if a new U.S. administration introduces interest rate cuts. Lower rates could enhance mortgage affordability, making private condominiums more appealing to buyers. If the Singapore Overnight Rate Average (SORA) dips below HDB loan rates, it could further shift buyer interest towards condominiums, potentially narrowing the gap between public and private housing demand.

Sustained demand for larger HDB units

Despite these shifts, larger HDB flats, including Executive Apartments and maisonettes, are likely to remain popular. Their affordability compared to condominiums and limited supply make them attractive options, especially for families seeking more space. However, falling SORA rates could present competition by boosting the appeal of private properties.

Investor behaviour in Condominium launches

Investor activity in new condo launches is also expected to continue in 2025. Many investors prioritise rental yield over owner-occupancy, particularly as new projects approach completion. This trend may sustain demand for units in developments slated to TOP within the year.

Read more: Singapore Property Market Year-End Review 2024 And 2025 Outlook

Planning on purchasing a home of your own this year? Take a look at your options here. 

 

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