moneyspinner
14-06-07, 11:41
‘Sellers’ market’ has returned to public housing sectorhttp://www2.nationproperty.com.sg/npp2/images/spacer.gif
14 June
The ripple effect of the property boom in the private property segment has caused prices of bigger HDB flats to rise.
Reportedly, the recent spate of private estate collective sales has created many cash-rich individuals who are ‘down-grading’ to larger resale HDB flats. With the windfall from their earlier collective sales, they could well afford to pay top dollar for big flats in good location.
Meanwhile, the soaring of private apartment rents has also stoked rents of HDB units. Experts have put the rent hike of HDB flats to as high as 35% compared to last year. With rental yield improving, fewer flat owners are putting their flats up for sale. This has caused more tenants to want to own a flat more urgently. And such severe constraint in the demand and supply situation is certainly pushing prices further up.
Bigger flats tend to benefit more from the current situation because of the higher rent that they command in today’s market. Many executive flats are now selling for about $20,000 above their value. Just last year, an ordinary E-flat, as they are called, would have to settle for just the market valuation prices.
When a flat is bought at a cash premium above its market valuation price, the buyer cannot use his Central Provident Fund savings or a home loan to pay for the difference. The cash premium has to be settled with upfront cash within ten days of the first HDB appointment.
Prices of resale HDB flats may have inched up only 1.3% in the first quarter as compared to the 4.6% achieved by private properties, the acute shortage of private rental properties will definitely improve things in the HDB resale arena. It used to be that four people would respond to each HDB property advertised. Currently, more than 10 people would respond to the same advertisement.
However, the basic fundamental of the resale market remains the same. It all boils down to the flats’ location. Right now, the boom is felt for flats closest to the city centre - like those near Tiong Bahru, Redhill and Queenstown MRT stations. Those flats in outlaying areas and newer towns such as Punggol or Sengkang will continue to face selling pressure because of the availability of unsold new HDB flats.
Source: Nationproperty website
14 June
The ripple effect of the property boom in the private property segment has caused prices of bigger HDB flats to rise.
Reportedly, the recent spate of private estate collective sales has created many cash-rich individuals who are ‘down-grading’ to larger resale HDB flats. With the windfall from their earlier collective sales, they could well afford to pay top dollar for big flats in good location.
Meanwhile, the soaring of private apartment rents has also stoked rents of HDB units. Experts have put the rent hike of HDB flats to as high as 35% compared to last year. With rental yield improving, fewer flat owners are putting their flats up for sale. This has caused more tenants to want to own a flat more urgently. And such severe constraint in the demand and supply situation is certainly pushing prices further up.
Bigger flats tend to benefit more from the current situation because of the higher rent that they command in today’s market. Many executive flats are now selling for about $20,000 above their value. Just last year, an ordinary E-flat, as they are called, would have to settle for just the market valuation prices.
When a flat is bought at a cash premium above its market valuation price, the buyer cannot use his Central Provident Fund savings or a home loan to pay for the difference. The cash premium has to be settled with upfront cash within ten days of the first HDB appointment.
Prices of resale HDB flats may have inched up only 1.3% in the first quarter as compared to the 4.6% achieved by private properties, the acute shortage of private rental properties will definitely improve things in the HDB resale arena. It used to be that four people would respond to each HDB property advertised. Currently, more than 10 people would respond to the same advertisement.
However, the basic fundamental of the resale market remains the same. It all boils down to the flats’ location. Right now, the boom is felt for flats closest to the city centre - like those near Tiong Bahru, Redhill and Queenstown MRT stations. Those flats in outlaying areas and newer towns such as Punggol or Sengkang will continue to face selling pressure because of the availability of unsold new HDB flats.
Source: Nationproperty website