THE TEMASEK TIMES

News and views from an unique perspective

Prices of resale HDB flats continue to climb

Posted by temasektimes on July 2, 2012

Despite a slew of cooling measures introduced lately and more BTO flats being released into the market, the prices of resale HDB flats continue to climb.

According to HDB’s flash estimates, resale prices rose by 1.3 per cent in the second quarter of this year, higher than the 0.6 percent growth in the first quarter of 2012 and reversing a trend of slow price growth in the previous two quarters.

HDB will release another 25,000 flats under its Build-To-Order (BTO) scheme in 2012, but it will not affect resale flat prices because most of the BTOs are still being built.

Speaking to queries from the media, Senior Vice President of local property firm PropNex, Lim Yong Hock, said:

“There’s still a wait so the impact won’t come in so soon. The impact will probably come in about one to two years’ time, when most of the BTOs are ready, and there’ll be more resale units in the market. Currently there’s still a shortfall of supply in the resale market.”

According to a property agent we spoke to, the continued rising prices of resale flats is caused by a genuine demand on the ground as a result of under-supply of new flats in previous years.

The prices of resale HDB flats have nearly doubled since 2006, thereby pricing many ordinary Singaporeans, especially newly-wed couples out of the housing market who now have to opt for BTO flats instead, thereby delaying marriage and starting families.

 

12 Responses to “Prices of resale HDB flats continue to climb”

  1. Jaded said

    Singles are being forced to buy flats from resale market. Singles are simply worthless in Singapore!

    • IronMan said

      Agreed. The PAP govt neither appreciate nor care for us soldiers. We served NS n reservists. We r nothing to them, dispensible. Every completion of a reservist cycle, we need to do a survey. One of the questions is “Are u willing to die defending S’pore in times of war?” This question is totally removed at later cycles. I always answered, “NO!!!”

      With no housing affordable n unable to provide shelter in starting a family, what is there for me to defend in S’pore? Willing to die some more? Pls lah…..That is a no brainer question.

      Get married first then u can buy a BTO flat, they said. It takes 2 to 3 years for a BTO flat to be completed. During that period, where do I n my spouse to stay? Within that period of waiting, if we happen to have kids, what a cramped enviroment to raise a family.

  2. Naivety said

    Hey Minister Cow,

    Why are the total floor space & area of newly built flat units getting smaller & smaller in overall area despite the rise in price?
    Please explain!!

    • Peter Thong said

      this is definitely a long overdue comment …………….. the comments made by HDB and the various ministers regarding the question why is HDB flats are getting smaller is rediculous. They explained that as the number of inhabitant per household is getting smaller the space per member has remained the same.
      Technically, they are right ……… however, this simplicity reply made me both pissed off as well as begin to question the wisdom of these ‘highly paid public servant’ ………. (I would like to question the name ‘servant’ in the future).
      Yes, we have lesser members in each household compared to years ago, however, how many person uses a bathroom at anyone time? Or master bedroom? Has this number changed from 20 years ago to now? ……….. maybe my family is the weird one, but I remembered 40 years ago, my 3 roomed flat has 1 toilet and it accommodates 1 person at any one given time and the master bedroom 2 (my parents) and I (until I was 5 and got thrown out to join my sisters) …….. has that changed? NO !!! So, why are the toilets and master bedroom gotten smaller?
      The only place where they logic makes sense is the living room and dinning room which had to accommodate 6-10 people ….. but then, those days its called living & dinning room where people sat all over from the sofa to the floor to the dinning table to chit chat and watch tv.
      To add to these changes, nowadays every family has more than 1 tv, plus PCs etc etc ………. golf bags, more toys, more clothers …….. so, I would expect flats to actually get bigger to accomodate not more people but more stuffs !!!!! I wonder where do these ‘servants’ live ??? hmmmmmmmmm
      …………… or am I the naive and weird one.

  3. GodBlessSG said

    This piece of news came out at a very good timing for HDB. HDB is having the May BTO flat selection and those flats are really really expensive. July BTO is coming up and I bet it is going to be so called “affordable”. So have to let out this type of news so that those young couples will continue to buy.

  4. Jack said

    who control the resale price of HDB flat? The market forces, really? or the valuer appointed by HDB?

  5. RU YI Gee said

    Don’t get distract by this post ,just a bullshit…it happen the one few unit sold been a favorable location and many others places all stuck..unsold.

    Those prices you paid for can buy a good resale freehold private apartment.

  6. PRC investor said

    Great news!

  7. Bam said

    Its really quite silly to speak to a property agent to ask about housing trends.

  8. Ron said

    So when can we sack Ah Khaw? After all his predecessor had to leave the cabinet because of unaffordable public housing, and he is not faring any better.

    I spoke to a real estate manager, the type who worked at a firm managing commercial estates for lease and sale. He said bluntly that it’s foreigners, or their money if you wish, that are pushing up prices.

    PAP knows that to stop escalating prices, all they need to do is to introduce capital gain tax on PRs and other foreigners when hey cash out, or a heavy tax at point of purchase. But PAP chooses bite- sized piecemeal tactics that only slow down the pace of INCREASING prices.

    Reason is simple, by keeping property prices high, there is more for the garment to gain by way of land sales etc. more foreigners will continue to flock in for a piece of action.

    Down with the heartless PAP.

  9. solaris8899 said

    it will be even higher in time to come. I think future loan can be extend beyond 50 years.

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