More than 14,000 resale flats were transacted in the first half of the year, which makes it the highest first half-year sales since 2010 when 17,598 units were sold. Resale prices for Housing Board flats continue to rise for the fifth consecutive quarter, during a pandemic, even though the number of transactions was not affected by more stringent Covid-19 measures. Property experts expect that prices are likely to rise further in the meantime, with demand outstripping supply in part due to delays in completion for new flats.
Many industry analysts expect that the prices of these properties are likely to rise further, with more demand than the available supply in part due to delays in the completion of new HDB flats.
During the second quarter of 2021, resale prices for resale HDB rose 3 per cent over the previous three months, matching the increase observed in the first quarter, according to data released by the HDB on 2021 July 23. The figure is significantly higher than HDB’s initial estimate of a 2.8 per cent rise made a few weeks ago.
The strong demand and home supply shortage may continue to keep resale prices in an elevated mode in the upcoming months. Construction delays are expected for many Build-To-Order (BTO) projects, with HDB also accepting appeals for non-penalty for cancellations due to delays. This will lead to many young couples with demanding housing needs resorting to the resale market however the supply slowness will start to reduce by next year when construction activities resume and pick up speed.
Data released by the Urban Redevelopment Authority recently also showed that private home prices in Singapore rose 0.8 per cent in the second quarter of this year, slowing from 3.3 per cent in the previous quarter. Despite so, demand should remain healthy, supported by Singapore’s projected recovery and a better employment market, along with continued interest from HDB upgraders as many buyers of suburban condominiums are HDB upgraders.