News............ I chose to tell you what I want you to know.
Almost 175,000 units are expected in the next 3 years.
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65,128 private condos are expected to be completed between this quarter and end 2016
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108,000 HDB flats will come onstream from 2014 till 2017.
70 to 95 percent of BTO flats for First Timer
Let use 70% are first timer, so got no hdb to sell.
You have 32,400 resale HDB for now to 2017= about 10,800 unit a year.
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http://sbr.com.sg/residential-proper...ar-low-in-2014
HDB resale volumes to hit 10-year low in 2014
Prices sink amid looming BTO flat glut.
The Housing and Development Board is set to release 80,000 new build-to-order flats within the next three years, prompting prospective owners to sell off their existing flats.
This imminent supply flood is set to drag resale prices further, even as the market continues to struggle with lacklustre transaction volumes in recent months.
According to PropNex, HDB will also launch a total of 24,300 BTO flats in 2014 just slightly lower than last year's supply of 25,100 units. Minister Khaw has also revealed that 18,000 households in the next 3 years will be moving to a BTO flat, thus they are required to sell off their existing flat within the 6 months.
“The imminent flood in supply of HDB resale homes from owners collecting the keys to their new BTO flats and private properties will add further pressure on resale prices, even though transaction volume may also improve slightly as a result due to the lower asking prices of sellers,” noted PropNex’s report.
Here’s more from PropNex:
“This will be a quiet year for the HDB resale market--– similar to 2013 which had seen the fewest deals in years. However, transactions have increased in Q2 and I expect the resale market to pick up in the second half as lower prices may entice more buyers to possibly upgrade to a larger flat,” commented Mr Ismail.
Mr Ismail expects HDB resale prices to soften 6 to 7 per cent for full-year 2014, with volumes hitting around 17,000 units--likely to be the lowest in the last decade.
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Both private condos and HDB flats are increasing at a staggering rate, with almost 175,000 new units expected to crowd the property market within the next 3 years. This in turn will only drag prices further.
According to PropertyGuru’s Outlook Report for H2 2014, a further 65,128 private condos are expected to be completed between this quarter and end 2016, while 108,000 HDB flats will come onstream from 2014 till 2017.
For private developers, the amount of vacant units up for sale is expected to be much larger than this as a result of spillovers from the year before.
“This cycle of remnant units will continue to have a domino effect on prices year- on-year
in the long run, adding further pressure on developers to offer discounts and incentives to purchase their projects,” noted the report.
Meanwhile, the large supply of HDB flats market will influence the amount of resale flats in the market in the next 3-5 years.
“Current flat owners are more likely to set their sights on the resale HDB market rather than purchase another BTO.
This is because second-time applicants must have a monthly household income of less than $12,000 to qualify for a BTO as well as the fact that they are not as favoured as compared to first-timers with families (70 to 95 percent of BTO flats are set aside for the latter). As such, the effect of higher BTO supply on resale demand is low – at least for the short term,” stated the report.
https://sg.finance.yahoo.com/news/fl...024300180.html
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