HDB Resale Prices Up 3% In Q1

HDB Resale Prices Up 3% In Q1

Resale rates of Real estate and Advancement Board (HDB) apartments enhanced 3% quarter-on-quarter in the first quarter of 2021, noting its fourth consecutive quarterly hike, showed HDB information on Friday (23 April).

On an annual basis, HDB resale costs rose 8.1%.

Christine Sun, Elder Vice President of Research and also Analytics at OrangeTee & Tie, said HDB resale prices are inching closer to the peak rate posted in the second quarter of 2013.

She kept in mind that numerous flats were marketed with cash-over-valuation (COV) in Q1 2021.

“Numerous offers and also price bidding process battles for selection apartments were common as purchasers were willing to spend added for premium apartments as they think that supply of these apartments is limited particularly for newer resale flats in mature estates,” she stated.

Provided the higher costs as well as boosting COV, HDB resale quantity dipped 0.8% to 7,581 devices in Q1 2021 from 7,642 systems in Q4 2020.

On an annual basis, sales rose 28.6% from 5,893 devices in Q1 2020.

At The Same Time, Huttons Asia Director of research Lee Sze Teck kept in mind that the 7.8% rise in HDB resale costs considering that the implementation of the breaker in Q2 2020 surpassed the 6.3% price growth in the personal market.

“With more instances of money over evaluation taking place, it has actually raised the question of affordability and whether there is a demand for the federal government to assess the scenario,” he said.

Over at the HDB rental market, HDB disclosed that the accepted applications to rent out HDB apartments rose 26% to 10,676 devices in Q1 2021 from 8,472 units in Q4 2020. Compared to the previous year, the variety of accepted applications was 7.9% lower.

Looking in advance, Sun expects the HDB resale market to “see a consistent stream of new participants in the coming months”.

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“Supply of Build-to-Order (BTO) flats in the upcoming task launches will continue to be limited, and also the number of unsuccessful BTO level candidates will remain high, especially for preferred websites or mature estates. Unsuccessful BTO flat applicants might turn to the HDB resale market to satisfy their real estate demands,” she claimed.

She expects the completion duration for yet-to-be-launched BTO jobs to continue to belong, provided the stockpile of tasks dealing with building and construction delays because of the pandemic.

“The scenario could be aggravated as more building and construction hold-ups may be expected as a result of new quarantine orders emerging from the recent renewal of Covid-19 cases in certain dorms,” included Sunlight.

At the same time, HDB said it would provide around 3,800 Build-To-Order (BTO) apartments in Geylang, Bukit Merah, Tengah as well as Woodlands in May.

In August Affinity at Serangoon Price also get the decrease, another 4,900 BTO apartments will be supplied in Hougang, Kallang Whampoa, Jurong East, Queenstown, Affinity at Serangoon, and also Tampines.

Lee expects the May BTO launch to register high interest for the Geylang as well as Bukit Merah flats.

“The Bukit Merah BTO is the very first because of the launch of Telok Blangah Parkview in 2013. The Geylang BTO is right beside the Macpherson MRT interchange. We can anticipate greater than 10 candidates for each flat,” he claimed.