New Reporter
26-06-23, 11:15
ANALYSIS: Which HDB towns will benefit upgraders?
June 22, 2023
In this article, we examine the difference in the average unit price for three, four, and five-room HDB flats in the same town to determine which HDB town has the largest or smallest price difference between the different flat types.
The price difference is important to homeowners who are looking to move to a larger or smaller flat in the same town. Couples who need more space for their expanding family will prefer towns where the unit price difference is skewed in favour of smaller flats, while empty nesters will prefer the opposite.
Methodology
EdgeProp Market Trends was used to obtain the average unit prices for the different HDB flat types in each HDB town. The current average unit price is based on resale transactions that took place this year.
The price difference is calculated as the percentage difference between the average unit prices of different flat types. For example, a price difference of 5% for a three and four-room flat would mean that the three-room flat has an average unit price that is 5% higher than its four-room counterpart. On the flip side, a difference of -10% for a four and five-room flat would mean that the smaller flat has a unit price that is 10% lower than the larger flat.
Central region
It is noteworthy that Central Area is the only HDB town where five-room flats have an average price of over $1,000 psf. Additionally, Central Area has the highest unit price for four-room flats, while Bukit Merah has three-room flats with the highest unit price.
Another significant observation is that the average unit prices for three-room flats in all HDB towns in the central region are lower than those of four-room flats in the same town by 4.5% to 29.7%. This makes three-room flats even more affordable for owners of four-room flats in the central region who plan to downsize to a three-room flat in the same town.
https://i.imgur.com/9IMK9KC.jpg
Among the HDB towns in the central region, Queenstown has the largest price gap between three and four-room flats, favouring four-room flats. The average unit price for three-room flats in Queenstown is 29.7% lower than their four-room counterparts. This means that owners of a three-room flat would need to have more funds in their bank account before they can upgrade to a four-room flat if they choose to remain in Queenstown. However, empty-nesters who sell their four-room flat in Queenstown will have ample funds to finance their purchase of a three-room flat in the same town.
The significant price gap may be attributed to a much stronger price appreciation for four-room flats in Queenstown compared to their three-room counterparts. Three-room flats in Queenstown have experienced a mere 9% growth since 2014, while four-room and five-room flats witnessed a growth of 25% and 19% respectively during the same period.
https://i.imgur.com/5gfMhVC.jpg
In contrast, homeowners of a four-room flat in Bukit Merah require the least amount of savings if they wish to upgrade to a five-room flat. This is because the price gap between the two flat types is the largest in favour of four-room flats compared to other HDB towns in the central region.
The average unit price for five-room flats in Bukit Merah is 14% lower than their four-room counterparts. This could be attributed to the fact that five-room flats in Bukit Merah have experienced the slowest price growth of 16% since 2014, in comparison to a growth of 25% and 22% for four and three-room flats, respectively.
More at: https://www.edgeprop.sg/property-news/analysis-which-hdb-towns-will-benefit-upgraders
June 22, 2023
In this article, we examine the difference in the average unit price for three, four, and five-room HDB flats in the same town to determine which HDB town has the largest or smallest price difference between the different flat types.
The price difference is important to homeowners who are looking to move to a larger or smaller flat in the same town. Couples who need more space for their expanding family will prefer towns where the unit price difference is skewed in favour of smaller flats, while empty nesters will prefer the opposite.
Methodology
EdgeProp Market Trends was used to obtain the average unit prices for the different HDB flat types in each HDB town. The current average unit price is based on resale transactions that took place this year.
The price difference is calculated as the percentage difference between the average unit prices of different flat types. For example, a price difference of 5% for a three and four-room flat would mean that the three-room flat has an average unit price that is 5% higher than its four-room counterpart. On the flip side, a difference of -10% for a four and five-room flat would mean that the smaller flat has a unit price that is 10% lower than the larger flat.
Central region
It is noteworthy that Central Area is the only HDB town where five-room flats have an average price of over $1,000 psf. Additionally, Central Area has the highest unit price for four-room flats, while Bukit Merah has three-room flats with the highest unit price.
Another significant observation is that the average unit prices for three-room flats in all HDB towns in the central region are lower than those of four-room flats in the same town by 4.5% to 29.7%. This makes three-room flats even more affordable for owners of four-room flats in the central region who plan to downsize to a three-room flat in the same town.
https://i.imgur.com/9IMK9KC.jpg
Among the HDB towns in the central region, Queenstown has the largest price gap between three and four-room flats, favouring four-room flats. The average unit price for three-room flats in Queenstown is 29.7% lower than their four-room counterparts. This means that owners of a three-room flat would need to have more funds in their bank account before they can upgrade to a four-room flat if they choose to remain in Queenstown. However, empty-nesters who sell their four-room flat in Queenstown will have ample funds to finance their purchase of a three-room flat in the same town.
The significant price gap may be attributed to a much stronger price appreciation for four-room flats in Queenstown compared to their three-room counterparts. Three-room flats in Queenstown have experienced a mere 9% growth since 2014, while four-room and five-room flats witnessed a growth of 25% and 19% respectively during the same period.
https://i.imgur.com/5gfMhVC.jpg
In contrast, homeowners of a four-room flat in Bukit Merah require the least amount of savings if they wish to upgrade to a five-room flat. This is because the price gap between the two flat types is the largest in favour of four-room flats compared to other HDB towns in the central region.
The average unit price for five-room flats in Bukit Merah is 14% lower than their four-room counterparts. This could be attributed to the fact that five-room flats in Bukit Merah have experienced the slowest price growth of 16% since 2014, in comparison to a growth of 25% and 22% for four and three-room flats, respectively.
More at: https://www.edgeprop.sg/property-news/analysis-which-hdb-towns-will-benefit-upgraders