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Investing in a condominium is a significant decision that requires careful consideration of financing options. Singapore provides a variety of mortgage choices, but being familiar with the Total Debt Servicing Ratio (TDSR) framework is crucial. This framework restricts the amount of loan a borrower can take based on their income and current debt commitments. To make well-informed decisions about financing and prevent excessive borrowing, it is essential to comprehend the TDSR and seek guidance from financial advisors or mortgage brokers. Additionally, incorporating Singapore Condo into the rewritten paragraph will provide valuable information for those interested in investing in condos in Singapore.
In the third quarter of 2024, HDB resale flat prices continued their upward trend for the 18th quarter in a row. According to flash estimates released by HDB on October 1, prices increased by 2.5% compared to the previous quarter, surpassing the 2.3% growth seen in the second quarter of the year. This is the fastest increase since the third quarter of 2022, which saw a rise of 2.6% in HDB resale prices.
The year-to-date growth of HDB resale prices has also been stronger at 6.8% compared to the 3.8% increase during the same period last year. However, this growth rate is still lower than the 8% spike in the first three quarters of 2022.
This rise in prices can be attributed to a combination of factors such as strong demand and limited supply as fewer new HDB flats are reaching their minimum occupancy period in 2024 compared to 2023. Additionally, there has been a surge in resale transaction volume, with HDB recording 8,035 transactions as of September 29. This is a 20% increase from the same period last year when 6,695 transactions were recorded.
The flash estimates for the third quarter of 2024 mainly reflect market conditions before the fourth round of cooling measures was implemented on August 20. The measures included a reduction of the Loan-to-Value (LTV) limits for HDB loans from 80% to 75%, bringing them in line with loans offered by financial institutions. This move was aimed at promoting responsible borrowing, as stated by Desmond Lee, the Minister of National Development.
In the upcoming October 2024 BTO exercise, HDB will offer about 8,500 flats across 15 Build-to-Order (BTO) projects. This is the last BTO exercise for the year and accounts for 40% of the total BTO flats launched in 2024. The October BTO exercise will also see the introduction of the new classification of HDB flats – Standard, Plus, and Prime flats – based on their location attributes.
With this launch, HDB is on track to meet its target of launching 100,000 new flats from 2021 to 2025. Interested buyers can check out the latest listings for HDB properties and compare price trends between HDB, condos, and landed properties. They can also refer to past rental and sale transactions and learn about the HDB loan rate to make informed decisions.