TLDR: Many People are discussing the potential market shift in HDB prices. Some are concerned about a possible drop in prices, we are sharing based on the observations on recent deals.

In 2024, the HDB market is showing promising signs of strength and resilience. Despite challenges like above-COV units and shorter tenures, there is a steady influx of buyers eager to invest in HDB properties. This article delves into the dynamics of the HDB market and takes a closer look at the profile of buyers and emerging trends in this sector.

Key Takeaways:

• The HDB market in 2024 remains robust, offering opportunities for buyers.
• Above-COV units continue to attract buyer interest, despite the additional costs.
• The phenomenon of million-dollar HDB units is on the rise, reflecting changing buyer preferences.
• Shorter tenures are not deterring buyers; people are still willing to invest in such properties.
• Government initiatives and financing options provide support and make purchasing HDB properties more accessible.

– HDB transactions are increasing, but prices may not necessarily go up because most buyers are downgraders, many of whom are older and paying in total cash.

– Older buyers with a lot of money are making quick decisions in the market, not caring about valuation, and downgrading from private properties.

– Young people are now more inclined to try for BTO flats instead of resale due to the shorter waiting time, marking a significant shift in the market.

– “This year, we may, and we will have more sellers in the market. So there will be more Supply.”

– “I see a lot of properties they’re not on the COV range anymore unless you’re in the very prime area.”

We have recently sold 2 HDBs within 1 month, and they are both either at valuation or above Valuation. We are seeing the buyers may not be 5-10 buyers in a single window period, but we are seeing 2-3 buyers in one weekend. Still, rather healthy.

The HDB market is moving fast, and there are changes in buyer demographics and preferences. However, we predicts a stable property market with no significant drop in prices.

In 2023, the HDB rental prices are dropping, our calls are getting lesser.

in 2024, after the Chinese New Year period, things are returning to normal.  Rental prices are decreasing despite interest rates not falling. Therefore, investors must increase rental prices to cover their mortgages. The market determines rental prices based on supply and demand.

Above-COV Units: Are Buyers Still Interested?

In the competitive HDB market for 2024, above-COV units have long been a topic of interest and conversation among buyers. These units, which require an additional cash payment on top of the valuation, offer the potential for a higher purchase price and provide homeowners with unique benefits. However, in recent times, there has been debate surrounding the demand for above-COV units and whether buyers are still interested in acquiring them.

The above-COV phenomenon emerged as a result of the strong demand for HDB flats in desirable locations, driving up prices beyond the valuation. Buyers faced with the opportunity to secure their dream home or desired location were willing to pay this premium, believing it was a worthwhile investment in the long run. The allure of a prime location, larger floor area, or unique characteristics often outweighed the financial considerations.

Yet, with the ever-changing dynamics of the HDB market, the demand for above-COV units has fluctuated. In some cases, buyers have become more cautious due to the implementation of cooling measures and the increasing number of above-COV transactions. This has led to greater scrutiny of pricing and a more discerning approach when considering above-COV options.

It is crucial to note that the demand for above-COV units is not uniform across the entire HDB market. Factors such as the location, size, condition, and unique attributes of the unit play a significant role in determining buyer interest. In some highly sought-after areas or districts, buyers may still be willing to pay a premium for above-COV units if they meet their specific preferences and needs.

To gain a better understanding of the demand for above-COV units, let’s take a closer look at the key factors that influence buyers’ decisions:

1. Location: Proximity to amenities, transportation, and desirable areas can significantly impact buyer interest in above-COV units.
2. Size and Design: Buyers may consider above-COV units that offer more space, unique layouts, or distinctive architectural features.
3. Renovations and Condition: Buyers often prioritize well-maintained units or those with high-quality renovations when considering above-COV options.
4. Personal Preferences and Budget: Each buyer has unique preferences, priorities, and financial limitations, which may influence their willingness to invest in above-COV units.

Ultimately, while the demand for above-COV units may vary, it remains a prominent feature in the HDB market for 2024. Buyers who are willing to carefully evaluate the specific benefits and drawbacks of purchasing above-COV units can still find opportunities to acquire their dream homes.

Factors influencing demand for above-COV units	Buyer interest
Location	Significant impact on interest
Size and Design	Consideration for more space and unique features
Renovations and Condition	Preference for well-maintained units
Personal Preferences and Budget	Varies according to individual circumstances

People are seeking more extensive HDB flats with good family profiles, while rental demand is decreasing due to tenants seeking cheaper options and landlords unwilling to lower prices. Those with fewer bedrooms or without a helper will be paid less due to market saturation.

The HDB market is moving fast, with most buyers being downgraders, many of whom are older and paying in total cash, leading to prices not expected to drop further. Many buyers closed deals in the last few weeks, and HDB flats are transacted quickly.

Older, wealthier buyers are entering the market, downgrading from private properties and making fast decisions, causing younger couples to feel like they are losing out. Sales of balance are low because people who bought before the pandemic have yet to take their keys, and the impact of this will be seen in 2026 or 2027.

Due to shorter waiting times, young people are now more inclined to buy BTO flats instead of resale. Many buyers are waiting for the SSD to be over before selling.

Deferring payment requires selling first, leading to more sellers in the market and an increase in supply. It is challenging to sell small and expensive private resale properties. The market is now in a norm market, making it difficult to sell off apartments, especially prime houses, as buyers are waiting for prices to drop.

We predicts a stable property market with no significant drop but anticipates significant economic changes. Singapore property purchase is currently safe, with prices remains strong and COV not significantly affecting newer houses.