Blog / Analysis from the HDB industry, mass marketplace and landed
Saturday, 18 August 2012 at 18:25
Prices in the HDB resale industry have noticed quick improves regardless of the economic downturn which started in 2008. Even though the Housing Improvement Board (HD has moved to boost the deliver of new flats to satisfy need in recent months, I will still count on charges to increase in between 5 to eight% in the months ahead as need carries on to outstrip provide.
Presently, the median Money Above Valuation (COV) for an HDB flat is close to $thirty,000 to $35,000. I foresee that even with the ramped up offer of flats from HDB, the COV for HDB resale flats will proceed to rise, although at a far more moderate tempo. This is since it will acquire some time ahead of the supply crunch is eased as new flats get time to be built. Some consumers may also choose to get from the resale market as the new flats might not be in suitable spots. Ultimately, with the implementation of the cooling steps, HDB homeowners who at present personal private home may not want to market their HDB flat as they will not be in a position to acquire a HDB flat once again except if they market their private homes.
As for mass market residences, my forecast is that mass market place charges will boost by amongst three to five% this calendar year. For older homes, rates might increase about eight% as they are still fairly cost-effective whilst rates in the Core Central Area (CCR) might rise amongst one to two%. With regards to new launches, I count on charges to drop by about eight% as the cost of several new launches have gone over $1000 psf - the limit of affordability for a mass industry residence.
Bearing in mind the 40% downpayment that purchasers have to pay out to obtain a second piece of home, consumers may contemplate the buy of units with a scaled-down quantum as the pitfalls are reduced and the generate, better. This will force need to the Relaxation of Central Area (RCR), therefore pushing rates there up amongst five to 8%. For landed houses, costs could rise among 5 to eight% because of to reduced deliver.
Other variables that will continue to perform a element in continued expansion in rates for the landed property section consist of:
1) Ongoing energy of the Singapore economic system, and
two) Land scarcity in Singapore
As most purchasers of landed houses purchase these houses for âhome-stayâ functions, there will be minimal speculation in this house market phase.
Evaluation from the HDB industry, mass market place and landed property segment, Evaluation from the HDB marketplace, mass market place and landed residence segment