Provence Residence by MCC Land

The flash estimate published by the Housing and Development Board (HDB) revealed that resale costs of public housing apartments increased by 2.9% in 4Q2020. That is the steepest quarterly gain in the HDB resale price index in more than decades, because the 3.8% cost growth attained in 3Q2011, states Wong Siew Ying, PropNex mind of content and research.

Provence Residence by MCC Land is one of the 4 residential EC sites situated in Canberra Link under the Sembawang planning area and close to the upcoming Canberra MRT station offered by HDB as part of the GLS program.

For the entire of 2020, HDB resale costs increased by 4.8%, submitting the biggest annual cost increase since 2012, in which resale level values rose by 6.5%, adds Wong. This marks the second consecutive year of cost increase in the HDB resale market after the 0.1% increase in 2019, ” she notes.

The amount of all HDB flats transacted at the resale market rose 2.6% y-o-y from the first 11 weeks of 2020 in comparison to corresponding period in 2019, notes Nicholas Mak, ERA Realty mind of study. The amount of all HDB flats transacted in December 2020 isn’t accessible yet.

The increase in the amount of resale prices of HDB flats near the close of the year has been higher, with 4,771 HDB apartments shifting hand at the months of October and November, which was 15.9% greater than the two weeks in 2019, observes Mak.

The gain in demand for resale apartments may also be a result of the consequences of Covid-19, points outside Lee Sze Teck, Huttons Asia manager of study.

PropNex is anticipating resale quantity to finish the year at approximately 23,000 units, along with the quantity to be 3% higher at roughly 24,000 units in 2021. The continuing global outbreak and macroeconomic uncertainties have made many buyers prudent, and induced them to elect for HDB flats that are less expensive. First-timers will also be qualified for a $160,000 housing grant in HDB.

Even the HDB resale market may gain from the upgraders’ and downgraders’ need, notes PropNex’s Wong. Some buyers will need to upgrade to larger apartments as the household size expands or desire a more spacious house because of telecommuting arrangements, though some could be downgrading from personal residential properties to HDB apartments amid the poor job market and job outlook, ” she adds.

The increase in costs in 4Q2020 could result from the growth in resale arrangements of new HDB flats which had reached the conclusion of the five-year Minimum Occupation Period (MOP), points outside ERA’s Mak.

A estimated 25,530 HDB flats can attain their five-year MOP in 2021, and yet another 31,325 apartments in 2022, that are both higher than the 24,163 units which was anticipated to strike MOP in 2020, estimates Christine Sun, head of consultancy & research in OrangeTee & Tie.

“This increasing supply of apartments attaining MOP helps stimulate demand and encourage costs, probably helping steer the HDB resale market towards a more favorable outlook during the following two decades,” states PropNex’s Wong.

Retrieval in the HDB resale market might also be credited to the ton of policy changes devised within the last two decades to make public housing more affordable for Singaporeans and boost the beauty of older apartments, states OrangeTee’s Sun. “Many new apartments that command higher prices also have been bandied within the previous couple of months. That may have raised the total cost index .”

Some buyers were willing to shell out on top -dollar for chosen apartments, notes Sun. This is greater compared to preceding 71 units sold to the entire of 2018, and 64 units in 2019, based on OrangeTee & Tie.

“The HDB resale market could continue to warm up this season as market analysts are forecasting a slow macroeconomic recovery in the second half 2021,” says Sun. “Couples that are doing nicely in their tasks might proceed with their updating plans, while individuals that are still influenced by the pandemic might downgrade from personal home to HDB apartments. This may lead to more apartments being placed on the industry in addition to more flats changing hands in the forthcoming months.”

Thus, Sun expects prices of resale apartments to grow by a further 2% to 5% this past year.