Earlier this year, a 5-room HDB flat in [email protected] Keng sold for a record-breaking S$1,205,000. It is the second unit in this development to fetch a resale price exceeding S$1 million. In the past, developments like Pinnacle at Duxton have also fetched attractive resale prices. With the media loving to swoon over these sales, you might think that selling your HDB will make you tons of money.
Sadly, this is not true. HDB flats are generally not good investment vehicles (compared to condos). Check out our article comparing BTO, Resale Flats and ECs.
While high resale prices are possible, they are certainly not the norm. HDB resale prices actually decreased by 0.2 per cent from June to July. The decrease is largely attributed to an oversupply in the resale market. More flats are reaching their Minimum Occupancy Period (MOP), causing a dip in resale prices.
High Resale Prices are not the norm (that’s why they are often reported)
Last year, 71 HDB units fetched resale prices more than $1,000,000. However, they represent only a fraction of the total resale transactions (3.5 per cent). Most of these are record-breaking purchases are made by home-owners who buy the property for personal stay. Thus, they tend to care less about rental yields or capital accumulation.
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