Why are HDB resale prices rising and what does this mean for home buyers?

Why are HDB resale prices rising and what does this mean for home buyers?

Due to the increase in prices of private properties and delayed completion of Build-To-Order (BTOs), this means that home buyers would turn to the HDB resale market instead, hence leading to the rise in HDB resale prices. As a result, some would prefer HDB resale flats instead of private properties.

Will HDB price continue to rise?

HDB resale flat prices have grown 8.9\% since the start of 2021, with the projected year-on-year increase set at an estimated 10\% to 12\%. Property analysts expect Housing and Development Board (HDB) resale prices to continue to increase in the next few quarters, albeit at a slower pace, reported Channel News Asia (CNA).

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What makes a million dollar HDB flat?

When there’s a low supply and high demand, naturally it will lead to higher prices. For million dollar HDBs, the limited flat supply of certain HDB flat types is driving the price increase. One of them is the rare HDB terrace housing in areas like Stirling Road, Jalan Tenteram and Jalan Bahagia.

Why is renting so expensive in Singapore?

Due to Singapore’s relatively small land size and large population, landed property is no longer very common and is consequently quite expensive to rent. The average rent for detached bungalows in prime locations is close S$18,000 per month.

What is the average HDB resale price in Singapore?

HDB Resale Flat Prices in Singapore. Here’s an overview of the HDB resale flat prices in Singapore by estate, based on the de facto 4-room unit: Estate — 4-room resale flat price (median) Ang Mo Kio — $405,400. Clementi — $497,500.

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How much is a 4-room HDB BTO flat in Singapore?

Prices for a 4-room HDB BTO flat in Sembawang start at $260,000, while median prices for a 4-room HDB resale flat in Sembawang are about $370,000. It’s also quite interesting to note that for Ang Mo Kio, prices for a 4-room HDB BTO flat there start at $423,000, while the average price for a 4-room HDB resale flat is $405,400 (lower!).

What does the new HDB valuation policy mean for the market?

In summary, the new policy states that a buyer and seller must agree on a price before seeking a valuation from HDB. Second, resale flat prices have been relatively stable since 2014. Assuming that resale flat prices have been stable, there should be minimal outlying data points that may affect the analysis.

Why are HDB flat prices so high?

This is probably because HDB flats are usually bought for staying, and not investment purposes. HDB data for Q1 2021 showed resale flat prices have climbed for the fifth consecutive quarter in Q2 2021, driven by robust demand. In fact, work from home is changing the way we buy homes.

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