HDB Resale prices hit an all-time high for a consecutive 6th quarter after growing 2.7% in Q3, 2021, exceeding their previous peak in Q2, 2013 by 0.7 per cent. Year on year, prices are up by 12.3%.
Paying cash over valuation (COV) for HDB resale flats is quite common in today’s market. There have been many instances where buyers are even willing to pay over $1 million for a resale flat. There were 67 such HDB flats sold this quarter, the most expensive of which was a five-room flat in Bishan which changed hands for $1.295 million in July.
Resale prices of HDB flats will likely continue to rise over the next few quarters, but are anticipated to rise at a more moderate pace. It has been observed that the rate of price increase has dropped from the previous quarters of 3%, suggesting that prices of HDB resale flats have already reached its peak.
Demand for HDB resale units currently outweighs the supply, and will continue to be so in the short term. The COVID-19 pandemic has brought about manpower shortages, supply chain disruptions and forced some construction firms out of business. This has also resulted in delayed completion of the new HDB flats. When demand exceeds supply, price will remain high and buyers will have to pay a premium for their flats.
Moving forward, if the borders open up further next year, this could ease manpower shortages and get BTO construction back on track – tempering demand for resale flats.
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PAULINE CHUA Senior Marketing Director ERA Realty Network Pte Ltd www.paulinechua.com WhatsApp: wa.me/6586927272