{"id":109704,"date":"2019-08-07T11:20:31","date_gmt":"2019-08-07T04:20:31","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/cpf-rule-changes-likely-sparked-demand-for-older-hdb-flats\/"},"modified":"2019-08-07T12:09:58","modified_gmt":"2019-08-07T05:09:58","slug":"cpf-rule-changes-likely-sparked-demand-for-older-hdb-flats","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cpf-rule-changes-likely-sparked-demand-for-older-hdb-flats\/","title":{"rendered":"CPF rule changes likely sparked demand for older HDB flats"},"content":{"rendered":"


\nThe government\u2019s policy updates on Central Provident Fund (CPF) usage and Housing and Development Board (HDB) housing loans may have given the HDB resale market a new lease of life.
\nThis comes as demand for older HDB flats surged in the second quarter of 2019, with the number of resale transactions for flats that were 40 years old and above jumping 40 percent to 564 units in May-June 2019, from 403 units over the same period last year, reported The Business Times citing an OrangeTee & Tie report.
\nResale transactions for flats between 30 and 40 years old also climbed 10.4 percent to 1,219 units.
\nIn May, the government unveiled the updated rules on CPF usage and HDB housing loans, which provided greater flexibility to homebuyers to use their CPF to purchase property and obtain bigger housing loans provided the property\u2019s remaining lease could cover the buyer until the age of 95.
\nTotal HDB resale transactions rose 29.8 percent quarter-on-quarter to 6,276 units in Q2 2019 \u2013 its first increase since Q3 2018. For the first half of this year, HDB resale transactions grew 6.8 percent year-on-year to 11,111 units.
\nWhile sales activity in the second quarter is usually in the uptrend, total transactions for Q2 2019 also improved by 5.6 percent from last year.
\n\u201cThis indicates that apart from a seasonal effect, the recent CPF changes may have been a major catalyst that spurred buying demand last quarter,\u201d said OrangeTee.
\nThe policy changes were intended to improve the resale market\u2019s liquidity while making it easier to buy and sell older flats.
\n\u201cThere were many concerns raised about the depreciating value of older flats in the earlier part of last year, and many sellers were struggling to find a buyer,\u201d noted OrangeTee.
\n\u201cTherefore, the year-on-year increase (in Q2 sales of older flats) is commendable and could signal that the recent policy changes may have started to take effect in helping to spur demand for older flats.\u201d
\nSales volume for younger flats below 10 years old also increased substantially during the period. OrangeTee, however, attributed it to the surge in housing supply of flats hitting their five-year minimum occupation period (MOP) and not the policy changes.
\nIn terms of market share, flats aged 30 years old and above accounted for 44.9 percent of total resale transactions in May-June 2019, up from 40.6 percent in May-June 2018.
\nFlats that are 40 years old and above also saw their market share increase to 14.2 percent from 10.8 percent last year.
\nMeanwhile, the market share of younger flats that are 10 years old but below 30 years old dropped to 35.8 percent from last year\u2019s 43.4 percent.
\nThe shift in demand for older flats may be due to the policy changes, said OrangeTee.
\nMoreover, four-room and five-room flats above 30 years old registered a higher increase in sales volume compared to smaller and younger flats.
\nResale transactions for four- and five-room flats aged 40 and above grew 53.5 percent and 54.5 percent year-on-year respectively.
\nSales for younger flats between 10 and 30 years old, on the other hand, dipped across all flat sizes.
\nLooking ahead, OrangeTee expects the HDB resale market to continue to benefit from the new rules, with older flats witnessing a revival in demand.
\nBut while sales volumes may continue to increase in the coming months, price recovery may not be as fast, considering the increasing supply of HDB resale flats as well as the influx of flats reaching their MOP this 2019.
\nWith this, OrangeTee maintained its price projection for HDB resale flats at between -1 and -2 percent for the whole 2019.
\nLooking to buy a Singapore home but not sure where to start? Get insight on the best locations for your new home with our\u00a0AreaInsider\u00a0Guides.
\nFiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email\u00a0fiona@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…CPF rule changes likely sparked demand for older HDB flats<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The government\u2019s policy updates on Central Provident Fund (CPF) usage and Housing and Development Board...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-109704","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-sxq","jetpack-related-posts":[{"id":116101,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-resale-prices-not-to-correct-excessively\/","url_meta":{"origin":109704,"position":0},"title":"HDB resale prices not to \u201ccorrect excessively\u201d","date":"May 6, 2020","format":false,"excerpt":"\r OrangeTee & Tie\u00a0expects property sales to \u201cpick up speed and regain some momentum when the crisis subsides and safe distancing measures are gradually eased\u201d.\u00a0 While housing demand may ease should the Covid-19 pandemic persist, OrangeTee & Tie does not expect resale prices of Housing and Development Board (HDB) flats\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":122996,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/incomes-have-kept-pace-with-prices-of-new-hdb-units-resale-flats\/","url_meta":{"origin":109704,"position":1},"title":"Incomes have kept pace with prices of new HDB units, resale flats","date":"November 3, 2021","format":false,"excerpt":"\r HDB subsidies for new and resale flats keep public housing affordable; among resale flat buyers who have taken\u00a0up an HDB loan, the mortgage servicing ratio\u00a0has remained stable at 23%. New Housing and Development Board (HDB) units and resale flats continue to remain affordable as incomes of Singaporeans have generally\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/11\/Colour-Scheme-HDB-e1479092279776.original.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":114503,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-to-offer-more-two-room-flats-in-may-and-august-sale-exercises\/","url_meta":{"origin":109704,"position":2},"title":"HDB to offer more two-room flats in May and August sale exercises","date":"February 25, 2020","format":false,"excerpt":"\r The upcoming BTO exercises in Tengah, Choa Chu Kang and Woodlands will offer more two-room flats for singles 35 years old and above.\u00a0 HDB will offer more two-room Build-To-Order (BTO) flats in Tengah, Choa Chu Kang and Woodlands as more singles acquire homes following a rule change in 2013,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":44908,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/higher-demand-expected-for-hdb-resale-flats-experts\/","url_meta":{"origin":109704,"position":3},"title":"Higher demand expected for HDB resale flats: experts","date":"February 21, 2017","format":false,"excerpt":"\r Despite expectations of higher demand in the HDB resale market, prices are not likely to shoot up, say analysts.\u00a0 \u00a0 HDB resale flats have become more appealing for first-time buyers in light of the higher CPF housing grants announced as part of yesterday\u2019s budget, said Eugene Lim Key Executive\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":106993,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-rules-on-cpf-usage-how-will-this-affect-homebuyers\/","url_meta":{"origin":109704,"position":4},"title":"New Rules On CPF Usage \u2013 How Will This Affect Homebuyers?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0","date":"May 10, 2019","format":false,"excerpt":"\r Singaporeans will now have more flexibility in using their Central Provident Fund (CPF) when purchasing older properties. From Friday (May 10), home buyers will be able to draw more from their CPF to buy ageing flats, provided that the property\u2019s remaining lease covers the youngest buyer until the age\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":110663,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/enhanced-housing-grant-to-boost-demand-for-hdb-resale-flats\/","url_meta":{"origin":109704,"position":5},"title":"Enhanced housing grant to boost demand for HDB resale flats","date":"September 11, 2019","format":false,"excerpt":"\r The new housing grant, streamlines two existing grants and comes with a higher wage ceiling. It also removed restriction on the location and type of flats being purchased. Analysts expect the Enhanced Central Provident Fund (CPF) Housing Grant unveiled on Tuesday (10 September) to further boost demand in the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/109704"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=109704"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/109704\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=109704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=109704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=109704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}