HDB resale prices rising in last 4 years

HDB resale prices rising in the last 4 years, creating great wealth for HDB owners who can then look to upgrade to a private condo such as Lentoria.

Introduction

Singapore’s Housing and Development Board (HDB) resale flat market has been witnessing significant changes in recent years. In this article, we will delve into the factors behind the steady rise in HDB resale prices, which have even outpaced the growth in median resale and new private home prices in 2020 and 2021, as analysts have observed.

Understanding the Trend

The Straits Times reported that median resale Housing Board flat prices have been on a continuous upward trajectory for the past four years. In 2022, prices experienced a 9.2 percent surge, reaching $499 per square foot (psf). This remarkable increase continued into 2023, with a 6.2 percent rise, bringing the price to $530 psf[^1^].

However, it’s important to note that this growth momentum slowed down in 2022 and 2023. This deceleration can be attributed to several factors, including price resistance and the introduction of cooling measures in September 2022[^1^].

Factors Driving the HDB Resale Prices Rising

Several key factors have contributed to the upward trajectory of HDB resale prices:

Demand and Supply Dynamics

Channel NewsAsia reported that flash estimates for Q3 2023 showed a 1.2 percent increase in resale prices for public housing flats. This increase, although slightly lower than the previous quarter, reflects the ongoing demand for HDB resale flats[^2^].

Economic Conditions

DollarBack Mortgage highlighted that in 2022, Singapore’s HDB resale prices grew by 10.4 percent. While this growth was slower compared to the 12.7 percent rise in 2021, it indicates the resilience of the HDB resale market[^3^].

Government Interventions

To curb the rapid price escalation, the government implemented cooling measures in September 2022. As reported by The Straits Times, these measures had an impact, as resale volume dropped by 11.3 percent compared to the same period in 2022[^4^].

Outlook for the HDB Resale Market

The Business Times predicts that overall prices are expected to range between 5 percent and 6 percent in 2023. This represents a significant easing from the double-digit increases seen in 2021 and 2022.

Frequently Asked Questions

Q1: What are the key factors driving the rise in HDB resale prices?
A1: The rise in HDB resale prices can be attributed to strong demand, economic conditions, and government interventions.

Q2: Has the growth in HDB resale prices slowed down recently?
A2: Yes, the growth in HDB resale prices slowed down in 2022 and 2023, partly due to cooling measures introduced by the government.

Q3: What is the outlook for HDB resale prices in 2023?
A3: Prices are predicted to range between 5 percent and 6 percent in 2023, representing a significant easing from previous years.

In conclusion, the HDB resale market in Singapore has shown resilience and continues to be a significant segment of the real estate landscape. While prices have moderated, it remains an area of interest for both buyers and sellers.

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