SINGAPORE: On Friday (24 January), the Housing & Development Board (HDB) released the latest data showing that prices of HDB resale flats experienced a significant increase of 9.7% in 2024.
Notably, the year also recorded a historic high of 1,035 million-dollar flat transactions.
Netizens voiced frustration with Prime Minister Lawrence Wong’s earlier assurances that public housing would remain affordable for Singaporeans, contrasting this with the evident upward trend in HDB resale prices.
HDB reported that the Resale Price Index (RPI) for the 4th quarter of 2024 stood at 197.9, marking a 2.6% increase compared to the 3rd quarter of 2024.
The 2024 price hike of 9.7% is a significant jump from the 4.9% rise in 2023, though slightly lower than the 10.4% surge in 2022.
HDB noted that demand for resale flats remained robust throughout 2024, driven by “broad-based demand” across various flat types.
HDB stated that the government reduced the loan-to-value (LTV) limit for HDB housing loans from 80% to 75% in August 2024 to promote financial prudence and curb excessive borrowing.
n 2024, a record 1,035 million-dollar flat transactions were made. However, the number of such transactions decreased in Q4, dropping to 285 from 331 in the previous quarter.
HDB said it remains focused on addressing supply constraints in the housing market and plans to launch around 19,600 BTO flats in 2025, including 3,800 units with waiting times under three years.
Five projects in Kallang/Whampoa, Queenstown, Woodlands, and Yishun will offer 5,000 flats in February.
Additionally, more than 5,500 balance flats will be launched, marking the largest exercise for such flats.
HDB is also set to exceed its 100,000-flat target, launching approximately 102,300 BTO flats between 2021 and 2025.
Netizens voice concerns over contradictions in government assurances on HDB affordability
Netizens on platforms like CNA, The Straits Times, The Business Times Facebook, and Reddit expressed concerns about the government’s assurances on HDB affordability.
Many pointed out contradictions between the government’s statements, particularly from Lawrence Wong, and the reality faced by buyers.
Discontent arose over the narrative that household income growth has kept pace with rising flat prices, with some contrasting this to past generations where single-income households were sufficient.
During a student dialogue on 21 January 2025, Wong asserted that BTO prices are set relative to household incomes, with affordability ensured by substantial government subsidies.
However, this was contradicted by HDB’s stance, which states that BTO prices are based on the market value of comparable resale flats in the area, factoring in location, flat attributes, and market conditions, before applying a “market discount” to ensure affordability.
Redditor warns HDB market will keep struggling without drastic reforms
A Redditor worried about the significant price increase for 4- and 5-room flats after the Minimum Occupation Period (MOP). The comment noted that the true market value for these flats is much higher than the original price, questioning whether wealth transfer is an intended feature of the BTO system.
The user argued that increasing supply is not feasible due to land scarcity, and reducing the price gap through increased subsidies could worsen the problem.
The user suggested that without drastic reforms, such as a controlled market, the HDB market will continue to struggle, with prices rising and making it harder for people to afford homes.
Comments on Reddit pointed out that despite stagnant wages, housing costs have increased significantly in 2024. Some netizens compared the affordability of HDB flats in the past, noting that it took fewer years of a fresh graduate’s salary to pay off a flat.
Others questioned whether median incomes had risen at the same rate as housing prices, pointing out the steep increase in housing costs since 2020.
Netizen laments struggle to afford a home due to high prices
A netizen expressed frustration over the difficulty of finding a suitable home after their family expanded, noting that the high prices make it unlikely they could afford a property at their age.
Another comment expressed frustration, pointing out that despite clearing land and building more flats and condos amid a declining birth rate, the housing issue remains unresolved. The comment called for changes to housing or population policies to address the problem.
Criticism of current housing policies: An unsustainable model
Another Redditor criticised the current housing system, arguing that younger buyers are burdened with higher prices to support the rising values of older properties, while the government is forced to increase subsidies to keep the system from collapsing.
The comment also took issue with the ability to flip BTO flats after the MOP, allowing individuals to privatise profits while socialising the costs. The Redditor warned that this model is unsustainable and could lead to a collapse of the housing market.
Netizens propose measures to make HDB flats more affordable
Several measures were suggested to make HDB homes more affordable. One proposal was to halt the resale of HDB flats, restricting sales to transfers within families in order to prevent subsidised housing from being sold on the open market.
Another suggestion was to limit the resale of newer flats to HDB at a specified price and to restrict older flats to citizens only, excluding Permanent Residents. These proposals aim to curb the profitability of the housing market and ensure affordable housing for Singaporeans.
