Monthly record of 23 million-dollar HDB resale flats sold in February. What’s in it for the Singapore property buyers?
Is HDB flats a go to investment today?
- $2-3 million flats have been resold in Feb 2021. This is a new monthly record since last year.
- For the 8th month straight, resale prices of HDB flats are consistently increasing at 8.3% per month.
- 1.4% growth in resale prices alone in Feb 2021 compared to Jan 2021.
The flats that went for at least S$1million make up about 1% of the total amount of units. The best-transacted price to get a resale level last month was S$1.21 million to get an executive maisonette at Toh Yi Drive. At non-mature estates, the highest transacted price was S$890,000. That is if you want to get an executive premium maisonette at Choa Chu Kang Street 64.
Together, 13 million-dollar flats were sold in January. The number of such buys totals a figure of 36 for its first two months of this season. This is compared to just eight for the exact identical span in 2020.
Four maisonettes bigger than 140 square metres were part of this heap.
For the overall HDB resale value, an overall total of 2,165 flats was sold in February. This is down 13.4% from January but 29.8% more compared to the previous year.
PropNex head of content and research Wong Siew Ying explained the resale market took a breather last month. This is due to the Chinese New Year festivities and will likely hike up again.
Four-room flats constructed 40.7% of flats re-sold whereas five-room flats comprised 28.6%. On the other hand, three-room apartments stood at 21.6%. The remainder were two-room along with multi-generation apartments.
Ms Sun said that popular tight supply and recovering market sentiment might be propping up HDB resale prices.
“Many young couples also have looked to the resale market as many were unsuccessful in recent BTO (Build-To-Order) launches. Or, could not wait greater than five years for the completion of fresh BTO apartments. Further, demand might have been pushed up by Singaporeans downgrading from private condominiums,” she added.
Ms Wong noted that Punggol led February’s sales 208 resale flat trades. Followed closely by this were Sengkang with 205 transactions and Tampines with 153 transactions.
“Ordinarily, resale apartments in the suburban areas have a tendency to relish keen buying interest compared with those located closer to the town due to their more affordable rates,” she said.
Ms Wong anticipates HDB resale prices to stay resilient for that full year, potentially growing by 3% to 5%.
How does the demand of HDB sale look like in 2021?
Demand will be driven by means of a bumper harvest of newer resale flats entering the industry after attaining their Minimum Occupation Period. It will also see BTO applicants who turn to the resale market. Because they’re defeated by oversubscription of attractive BTO projects and more watch for BTO completions, she included.
Homebuyers are anticipating that the prices for resale flats will rise soon. Moreover, new cooling measures will be introduced to regulate the Singapore property industry. So, many of them are looking to buy resale flats right now to escape from the impact of higher price and strict regulation.
The Singapore government issued warnings that it really is keeping a close eye on the market to guarantee sustainable rates. A few HDB apartment buyers may get worried that any debut of improvement cooling measures. Even if they are targeted at the private residential property market, may have a negative spillover influence in the HDB residential industry.
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