HDB resale prices rise 3% in Q1, 2021

The figure represents the fourth consecutive quarter of growth.

Resale prices in the public housing market went up 3% in Q1 2021, as compared to the previous quarter, the Housing and Development Board (HDB) said. It represents the fourth consecutive quarter of growth in resale prices.

The resale price index also rose to 142.2, whilst resale transactions fell 0.8% from the previous quarter.

According to OrangeTee & Tie senior vice president of research and analytics Christine Sun, the improving global economic outlook lifted consumers’ confidence and the market sentiment for the HDB resale market.

Demand for HDB resale flats started gaining traction from the second half of last year and resale prices have been inching higher in recent months.

“Due to the strong demand for housing, property prices have been escalating in many advanced cities. HDB resale prices rose higher last quarter in tandem with the rising home values observed globally. The supply and demand imbalance of flats has also caused prices of HDB resale flats to climb in certain locations,” Sun said.

She added that many flats were sold with cash over valuation in the previous quarter.

“Multiple offers and price bidding wars for choice flats were common as buyers were willing to shell out extra for premium flats as they believe that supply of these flats are limited especially for newer resale flats in mature estates,” Sun said.

The HDB resale market is likely to see a continual stream of new entrants in the coming months, Sun noted.

HDB will offer about 3,800 build-to-order (BTO) flats in May, and an additional 4,900 BTO flats in August this year.

Supply of BTO flats in the upcoming project launches will continue to be limited and the number of unsuccessful BTO flat applicants will remain high especially for popular sites or mature estates,” she said.

“As more borders are expected to be reopened, global economies are primed to boom. Owner-occupiers and first-time homebuyers may flood back into the market as most people are expecting prices of properties to surge post-pandemic,” she added.