It’s not just Singapore’s luxury homes that are suffering – HDB resale flat prices are also falling.
However, the first quarter of this year saw only a 0.3 per cent dip in HDB resale prices, as opposed to around 0.8 per cent in the previous quarter. In contrast to falling prices, HDB resale volumes have been rising – they were up 4.6 per cent last year.
HDB resale flat prices are also considered to have stablised by many market watchers. who note that they have only dropped two per cent over 2017 and 2018.
The slowing decline in prices, along with rising volumes, may indicate an inflection point. Resale prices may now have fallen to a level that buyers consider palatable.
We could also see a renewed interest in older HDB resale flats
Following the relaxed Central Provident Fund (CPF) rules, the HDB resale market may see renewed public interest in older flats. The changes in CPF loan rules could simplify the purchase of 60+ year-old HDB flats. Prior to this, it was not possible to tap CPF funds to buy such old flats.
More information on these changes will be revealed soon, and they will be implemented in May.
Resale is also beginning to look more attractive than ECs this year
There is only one Executive Condominium (EC) launch this year, at Sumang Walk. Along with this limited option, a decrease in Loan to Value (LTV) ratios means EC buyers face a higher cash outlay.
Resale flats can be bought with HDB loans, which have an LTV of 90 per cent. ECs, on the other hand, must be purchased with bank loans – these have a lower LTV of just 75 per cent. We expect that the combination of lower overall prices, and smaller down payments, will draw more the spotlight to the resale market for the year ahead.
Would you buy a HDB resale flat? Voice your thoughts in our comments section or on our Facebook community page.
Looking for a property? Find the home of your dreams today on Singapore’s largest property portal 99.co! You can also access a wide range of tools to calculate your down payments and loan repayments, to make an informed purchase.
About Maelyn Lagman
Looking to sell your property?
Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.
One easy way is to send us a request for a credible and trusted property consultant to reach out to you.
Alternatively, you can jump onto 99.co’s Property Value Tool to get an estimate for free.
If you’re looking for your dream home, be it as a first-time or seasoned homebuyer or seller – say, to upgrade or right-size – you will find it on Singapore’s fastest-growing property portal 99.co.
Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.
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