As we’re nearing the end of June, it’s time to take a look at how the HDB real estate market fared throughout the past few months to better inform your buying decisions for the rest of the year.
Increase in HDB flats sold in May
A total of 2,075 HDB flats were sold last month, indicating an increase of 7.5% from the number of sale transactions in April (1,931 units). These numbers show a consistent growth pattern as there was also a 26.1% jump in the number of resale transactions in March (1,657 units) as compared to February.
Decrease in HDB Resale Prices
While more and more HDB flats were transacted, the HDB resale prices are showing a slight dip with a 0.2% decrease across both mature and non-mature estates. Those who are on the lookout for a three-room, four-room or five-room flat will be pleased to know that prices dropped by 0.2% for these flat types. Likewise, executive flats also show a decrease of 0.6%. Perhaps these favourable conditions have contributed to the boost in the number of resale transactions for the month of May.
Possible factors for the rise in resale transactions
Relaxed CPF rule changes
One factor could be due to the recent implementation of the relaxed CPF rule changes. The new rules are based on whether the property’s remaining lease can cover the youngest home buyer up to the age of at least 95 years old. According to the authorities, this gives greater flexibility to home buyers when buying older flats, while at the same time ensuring sufficient funds for retirement. This is good news for older home buyers looking to get older homes in mature estates.
More BTOs reached their Minimum Occupation Period (MOP)
Could it also be due to a growing preference for 5-year-old BTO flats that just entered the resale market? Around 27,000 BTOs and 26,000 resale flats reached their MOP this year. With this much supply, there’s clearly no shortage for discerning buyers with a penchant for BTOs.
So, what can we expect to see in the next few months?
Our trusty Ohmyhome agent foresees that the market will continue to see more downward pressure due to economic uncertainty. Prices for resale flats have moderated and that’s why we are seeing more transaction volume as prices are getting more affordable. On top of that, we should be seeing the transaction volume increase slightly in the coming months as well.
We’re definitely keeping our eyes peeled on the resale price index (note: which tracks HDB price patterns) for any noticeable trends. Statistics aside, buying a resale HDB flat without an agent is faster than ever with the help of our one-stop property platform that lets you find homes, chat directly with homeowners and transact at no cost. If you’re not ready to DIY, let our team of top-tier agents assist you in your home transaction journey from start to finish. Call 6886 9009 to find out more!
Sources: BusinessTimes, SingaporeBusinessReview, ChannelNewsAsia, StraitsTimes
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