HDB resale prices have risen for 10 quarters : Singapore has seen Housing and Development Board (HDB) resale prices rise for 10 consecutive quarters, even as the Government tried to implement property cooling measures, the most recent being the 30th Sep 2022 Measures.
The resale price index, which provides information on the general price movements in the resale public housing market in Singapore, has risen for 10 consecutive quarters. Figures from HDB show that the median prices of resale homes in some non-mature towns have risen by more than 40 per cent since the first quarter of 2020 – just before the recent property boom.
Median resale prices for HDB flast have climbed the most in heartland areas over the past two and a half years, with towns such as Sembawang and Woodlands recording the largest increases.
This is how HDB resale prices have risen across towns in Singapore.
HDB resale prices have risen for 10 quarters : 5 Room HDB Flats Prices
Data showed that the median resale prices of five-room flats rose by up to 40 per cent across the country.
The biggest jump was in Choa Chu Kang, from S$420,000 to S$588,000. In Woodlands, the median resale prices for five-room flats saw a 38.3 per cent surge from S$408,000 to S$566,000 – a difference of S$155,000.
Aside from these two heartland estates, other estates such as Bukit Batok, Sembawang and Ang Mo Kio are also in the top increases.
Hybrid work arrangements due to the COVID-19 pandemic may be a key reason why people are forking out more for larger flats in non-mature towns. The five-room flats are also gaining popularity mainly because of a lack of supply in the market and a growing need for bigger living spaces. In addition, if you noticed the recent BTOs, due to the increase in BTO prices, in reality, the number of five-room Build-to-Order (BTO) flats launched for sale in recent years has been “much lower” than four-room flats, especially in mature estates. This led to demand outstripping supply. It is a very much a chicken and egg situation.
Five-room flats are also generally snapped up by larger households and are available in fewer estates, in comparison to four-room units. With prices rising, some people may also be FOMO and then rushed to buy bigger units as they are worried such units may be “out of their financial reach” in future.
HDB resale prices have risen for 10 quarters : 4 Room HDB Flats Prices
For four-room resale flats, the biggest jump in median prices was 55.7 per cent in Kallang/Whampoa.
The other big jumps were seen in heartland areas. Sembawang saw a 46.7 per cent increase, from S$351,000 to S$515,000, followed by Choa Chua Kang with a 45.7 per cent rise.
These estates have more new flats that have just met the “MOP” (minimum occupation period) and as they are much newer with high leasehold periods left (about 95 years or so), these newer ones tend to fetch higher prices.
Moreover, as prices of resale flats in mature estates such as Bishan, Toa Payoh and Ang Mo Kio continue to climb, some may consider resale flats in the non-mature estates for their affordability. Because resale flats in non-mature estates are typically cheaper, the increase is much more significant.
It would be fair to say that these are Worrying Times for HDB Prices in Singapore, especially for the next generation.
