For those closely following the HDB Resale Price Index every quarter, we’ve got news for you!
After showing a back-to-back downward trend for the past four quarters (based on this year’s HDB Resale Price Index, Q1 and Q2 saw a continual 0.3% and 0.2% decline respectively), it seems that the third quarter of 2019 (flash estimate) has shown a slight increase, with resale prices going up by 0.1%.
There is movement in the Resale Price Index this Q3! What could have caused its sudden jump and what does this mean for resale flat prices going forward? Here’s a tentative look at what lies ahead for the HDB resale market.
What caused the price index to increase in Q3?
The HDB market is currently experiencing a number of developments.
The slight spike could be attributed to an upsurge in old flat sales due to recent CPF changes. The new, old flat friendly CPF rules were recently introduced on 9 May 2019 as a way to allow greater flexibility for buyers of older flats and prevent them from out-living their leases, while at the same time ensuring sufficient funds for retirement. The new rules are based on whether the property’s remaining lease can cover the youngest homebuyer up to the age of at least 95 years old. This is good news for home buyers looking to get older homes in mature estates and old flat owners who want to sell their property.
Does this mean prices will dramatically increase?
Don’t start worrying about soaring HDB prices yet! While it’s too soon to tell, experts say that prices will not deviate too sharply from its current trajectory.
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