reporter2
23-12-22, 10:15
Cooling measures dampen HDB home buyers’ enthusiasm
December 22, 2022
A five-room unit at Skyterrace @ Dawson is the most expensive resale flat this year. It was sold for $1.42 million in July. (Picture: Albert Chua/The Edge Singapore)
HDB resale prices continued to climb throughout 2022 despite housing affordability concerns and government intervention.
The most notable increases in demand and prices were recorded in non-mature estates like Bukit Batok, Sembawang, Yishun, Woodlands, and Jurong West, says Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie.
“There were buyers looking for affordable flats in non-mature estates. Although prices of flats in these areas have risen, they are still lower compared to resale flats in mature estates,” she says.
A wider acceptance of hybrid working arrangements in light of the pandemic means that more people are working remotely from home, says Nicholas Mak, head of research and consultancy at ERA Realty.
“As a result, some home buyers may prefer larger flats, but the overall supply of five-room flats in the market remains low,” says Mak. For now, the government does not intend to offer five-room BTO flats in mature estates, he adds. “Hence, those who want to buy a five-room flat in a mature estate will turn to the resale market even if prices are higher.”
BTO timelines put off buyers
The upward trajectory of resale HDB prices this year was also fuelled by a spillover in demand from buyers who were put off by the longer project completion timelines for some BTO projects.
According to Ismail Gafoor, CEO of PropNex Realty, most first-time home buyers typically attempt to get a BTO flat since these flats are highly subsidised. “The competition for BTO flats tends to be stiff and new flats may take three to five years to complete,” Gafoor says.
This means that only buyers without a pressing need for housing are likely to continue to apply for BTO flats as their first home, says Gafoor. Applicants who repeatedly fail to secure a BTO flat may decide to turn to the resale market, he adds.
Supply-chain issues in the construction industry delayed the completion times for a handful of BTO projects in 2020 and 2021. According to the government, most of these project timeline issues had been resolved and the projects were back on track by the start of this year.
More at: https://www.edgeprop.sg/property-news/cooling-measures-dampen-hdb-home-buyers%E2%80%99-enthusiasm
December 22, 2022
A five-room unit at Skyterrace @ Dawson is the most expensive resale flat this year. It was sold for $1.42 million in July. (Picture: Albert Chua/The Edge Singapore)
HDB resale prices continued to climb throughout 2022 despite housing affordability concerns and government intervention.
The most notable increases in demand and prices were recorded in non-mature estates like Bukit Batok, Sembawang, Yishun, Woodlands, and Jurong West, says Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie.
“There were buyers looking for affordable flats in non-mature estates. Although prices of flats in these areas have risen, they are still lower compared to resale flats in mature estates,” she says.
A wider acceptance of hybrid working arrangements in light of the pandemic means that more people are working remotely from home, says Nicholas Mak, head of research and consultancy at ERA Realty.
“As a result, some home buyers may prefer larger flats, but the overall supply of five-room flats in the market remains low,” says Mak. For now, the government does not intend to offer five-room BTO flats in mature estates, he adds. “Hence, those who want to buy a five-room flat in a mature estate will turn to the resale market even if prices are higher.”
BTO timelines put off buyers
The upward trajectory of resale HDB prices this year was also fuelled by a spillover in demand from buyers who were put off by the longer project completion timelines for some BTO projects.
According to Ismail Gafoor, CEO of PropNex Realty, most first-time home buyers typically attempt to get a BTO flat since these flats are highly subsidised. “The competition for BTO flats tends to be stiff and new flats may take three to five years to complete,” Gafoor says.
This means that only buyers without a pressing need for housing are likely to continue to apply for BTO flats as their first home, says Gafoor. Applicants who repeatedly fail to secure a BTO flat may decide to turn to the resale market, he adds.
Supply-chain issues in the construction industry delayed the completion times for a handful of BTO projects in 2020 and 2021. According to the government, most of these project timeline issues had been resolved and the projects were back on track by the start of this year.
More at: https://www.edgeprop.sg/property-news/cooling-measures-dampen-hdb-home-buyers%E2%80%99-enthusiasm