HDB Resale Prices in Singapore Rises After Covid 19

HDB resale prices have been rising steadily since the Covid 19 pandemic hit the country. In March, the number of transactions for resale flats decreased by almost half, from 1,969 units in March to 423 units in April. This is despite the fact that the government has imposed tightened safe distancing measures to prevent resale buyers from committing fraud.

The Government has also taken measures to curtail the use of COV in negotiation by allowing sellers to get a valuation report before meeting prospective buyers. During the General Election in 2011, the Government accelerated the construction of new BTO flats, keeping the public housing market competitive. As a result, more people began to opt for HDB resale flats directly from the government. Moreover, the Government introduced a series of property cooling measures to keep the public housing market stable. These included a higher buyer’s stamp duty, a lower loan-to-value financing quantum, and an increased cash down payment for mortgages.

During the COVID-19 outbreak, HDB resale prices remained steady and rose just 2.9 per cent quarter-on-quarter. Compared to the fourth-quarter of 2018, the market has continued to recover and is now expected to increase by 11 to 12 per cent this year. However, this rise has been accompanied by a steady increase in resale prices.

Though the COV has been suppressed for many years, it has been reinstated to curb the spread of Covid-19. Recent COV figures have ranged between $10,000 and $50,000, with choice flats fetching upwards of $200,000 or more. This growth is attributed in part to delays in construction and the launch of Build-to-Order projects. These factors have led to rising prices for HDB resale flats in Singapore.

After Covid 19, HDB resale prices in Singapore are expected to climb further in the second half of 2019. Earlier, COVs in Singapore were S$23,000 per unit in the fourth quarter of 2007 to S$38,000 in 2012, and a similar increase is expected in the third quarter. The COVs for new HDB flats have been at their highest since the start of the pandemic, with the last two years alone having led to an average COV of S$52,000.

The HDB resale market was still relatively hot in May, but the implementation of the tightening of Covid-19 measures has resulted in a slowdown in the market. Fewer property viewings and fewer flats changed hands, but the price of HDB resale flats has continued to increase for the 11th consecutive month. In May, HDB resale prices increased 1.2 per cent over April.

While the tightened Covid-19 measures have cooled the HDB resale market, the proceeds from HDB resale flats have helped the households transition into the private residential market. There are currently more than 13,000 flats for sale, proving the increasing affordability of HDB resale in Singapore. If you’re considering buying an HDB flat, there’s no better time to buy. The market is booming right now and this is a great time to jump on the bandwagon.

There are several reasons why the HDB resale market has increased. The influx of new residents has also contributed to the increase in the COV. After the General Election, the Government accelerated the construction of new BTO flats to keep the public housing market competitive. In July, there were 19 sales over S$1 million, accounting for 0.7 per cent of the total transactions.

The HDB resale market has also seen a surge in million-dollar transactions. The number of HDB resale flats sold in the first quarter of 2018 increased by 7.8 per cent. There were 19 HDB flats priced over S$1 million in July, or about one percent of the total HDB resale market. As a result, the resale prices have risen steadily.