Before 2020, we Singaporeans spent most of our time complaining about CPF schemes and HDB prices.
Now, we still complain about these things, but leave a little time for COVID-19 grumbles as well.
Even though many people have suffered financial troubles during the pandemic, prices for resale flats have continued to soar.
And it turns out that it’s the highest yearly increase in over a decade.
HDB Resale Prices in 2021 Rose a Whopping 12.5% As There’s Now More Demand Than Supply
According to HDB flash estimates, resale flat prices in Singapore rose 12.5% for the whole of 2021.
What’s more, prices increased for the seventh consecutive quarter from October to December last year, rising 3.2% from the previous quarter.
One of the reasons for this surge in price—the highest since 2010—is that demand continues to outpace supply.
Construction delays or long completion periods of Build-to-Order (BTO) flats may have prompted some buyers to go for a resale flat instead.
Other buyers who have turned to the resale market include private homeowners who sold their houses and downgraded to public housing.
HDB: Government to Increase Supply
This is why the government aims to “significantly” increase the public housing supply for at least the next two years, HDB said yesterday (2 Jan).
The Housing Board said it plans to launch up to 23,000 flats per year in 2022 and 2023, and is prepared to launch up to 100,000 flats in total from 2021 to 2025, “if needed, subject to prevailing demand.”
The authorities also introduced a host of measures last month in a bid to cool the property market, namely higher Additional Buyer’s Stamp Duties (ABSD), tighter loan-to-value (LTV) limits, and lower Total Debt Servicing Ratios (TDSR).
In the past year, several resale flats have gone for over a million dollars, including a 5-room flat in Bishan, which was acquired for S$1.36million.
Feb BTO Launch
The next BTO launch will take place in February, where 3,900 Build-to-Order (BTO) flats will be offered in towns or estates such as Geylang, Kallang Whampoa, Tengah, and Yishun.
And around 5,200 to 5,700 more BTO flats will be offered in May, in towns or estates such as Bukit Merah, Jurong West, Queenstown, Tampines, Toa Payoh, and Yishun.
But if the construction of new flats continued to be delayed, some first-time buyers, such as those getting married or planning to start a family, may feel they have no choice but to head to the resale market, or worse—buy a flat in Yishun.
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