{"id":19251,"date":"2018-08-15T10:24:13","date_gmt":"2018-08-15T02:24:13","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=19251"},"modified":"2022-07-01T04:59:10","modified_gmt":"2022-06-30T20:59:10","slug":"hdb-resale-prices-recovery","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/hdb-resale-prices-recovery\/","title":{"rendered":"Why HDB resale prices may be headed for a strong recovery"},"content":{"rendered":"
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Few property segments have changed as much as resale flats since the 2013 peak. Back then, HDB resale was a booming market where high Cash Over Valuation (COV) was taken as a given. Fast forward to today, and a combination of rules changes and loan curbs have resulted in flats selling at or even below their valuation; and all the while HDB resale prices have either fell or flatlined.<\/span>\t<\/p>\n

However, there could be signs of life on the horizon.<\/span>\t<\/p>\n

What\u2019s happening with resale flat prices today?<\/b><\/h3>\n

In 2Q 2018, the HDB Resale Price Index rose for the first time in more than nine quarters<\/a><\/span>. The price movement is small (0.1% up from Q1 2018), but it\u2019s significant because the fall in HDB resale prices has been slowing, and this is the point where the trend might finally reverse. Case in point: the number of HDB resale transactions also rose about a third (33%) from last quarter, from 4,458 to 5,941. <\/span>\t<\/p>\n

When the number of transactions go up in tandem with stabilising prices, it usually suggests an inflection point.<\/strong> That could mean HDB resale prices have gone as low as they can; buyers may now feel resale flats are better value compared to alternatives like new flats, Executive Condominiums, or private property.<\/span>\t<\/p>\n

Which areas are faring better?<\/b><\/h3>\n

For this quarter, resale flats with the highest median prices were in Toa Payoh and Queenstown. This is not surprising, given that one of the main reasons to buy resale is to live in central and mature districts (it\u2019s rare that new flats will be launched in these already packed areas). <\/span>\t<\/p>\n

Four-room flats in the central district currently have a median price of about $870,000, while five-room flats currently have a median price of roughly $845,000. This makes them some of the most expensive resale units on the market right now. <\/span>\t<\/p>\n

(If that sounds too pricey, check out 99.co. The <\/span>lowest prices for Toa Payoh resale units<\/span><\/a> are just around $416 per square foot. Many listed four-room units near Toa Payoh Central are selling for just around $480,000 to $540,000.)<\/span>\t<\/p>\n

The lowest median prices among resale flats are three-room units in Bukit Batok and Jurong West. The median price of three-rooms in Bukit Batok is around $246,000, while the median in Jurong West is around $260,000.<\/span>\t<\/p>\n

[Recommended article<\/em>: These are the 5 most in-demand HDB towns of 2Q 2018<\/a>]\t<\/p>\n

\"HDB
The HDB resale market could finally be looking up.<\/figcaption><\/figure>\n

Why might HDB resale prices be headed for a strong recovery?<\/b><\/h3>\n

Some possible reasons include:<\/span>\t<\/p>\n