{"id":123703,"date":"2021-12-09T01:04:13","date_gmt":"2021-12-08T18:04:13","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-flats-remain-attractive-as-investment-despite-restrictive-rules-under-plh-model\/"},"modified":"2021-12-09T09:20:46","modified_gmt":"2021-12-09T02:20:46","slug":"hdb-flats-remain-attractive-as-investment-despite-restrictive-rules-under-plh-model","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-flats-remain-attractive-as-investment-despite-restrictive-rules-under-plh-model\/","title":{"rendered":"HDB flats remain attractive as investment despite restrictive rules under PLH model"},"content":{"rendered":"


\nOver the past 20 years, prices of resale HDB flats increased by 0.82%\u00a0quarter-on-quarter on average, or an accumulated growth of almost 70%.
\nAside from providing a roof over people\u2019s heads, housing is also considered as one of the biggest assets for over 90% of Singaporean households.
\nIn an article posted in Channel News Asia (CNA), Professor Sing Tien Foo, the Director at the Institute of Real Estate and Urban Studies (IREUS) and Head of the Department of Real Estate at the National University of Singapore and IREUS Deputy Director Dr Lee Nai Jia noted that Singapore housing has significantly appreciated over the last 20 years, on the back of steady job growths and sound macro-economic management over the decades.
\nResold Housing and Development Board (HDB) flats, for instance, have created significant wealth for households over the past two decades.
\nThis comes as prices of resale HDB flats grew at an average of 0.82% per quarter or an accumulated growth of nearly 70% during this period. Price indices for private landed and non-landed residential property also rose by 71.5% and 58%, respectively.
\nWith this, HDB flats remains attractive as an investment for Singaporeans even as the government imposed restrictive rules for homes under the new prime location public housing (PLH) model.
\nThese include a 6% subsidy clawback to mitigate the risk of excessive windfalls from the resale of the flat and a longer minimum occupation period (MOP) of 10 years. Owners of such flats are also barred from renting their entire homes at any point and could only sell to \u201ca strict pool of eligible buyers\u201d.
\n\u201cWith all these rules, do people still want to buy these HDB flats?\u201d asked Sing and Lee.
\n\u201cThe answer is pretty resounding. The first batch of Build-To-Order (BTO) homes in Rochor has seen healthy demand, at 10.3 times over-subscription.\u201d
\nThey noted that the PLH model follows HDB\u2019s spirit in keeping housing affordable and inclusive.
\nGiven the high land costs at prime locations, many Singapore families \u201cwould not otherwise have a chance to live in those places if the building of HDB flats were left solely to the free market,\u201d they said.
\n\u201cMore ordinary Singaporeans would also miss the chance of long-term economic gains of a home with an attractive location.\u201d
\nNotably, prices of homes at more centrally located neighbourhoods within the Central Area, Whampoa, Queenstown and Bukit Merah have appreciated faster compared to farther-flung neighbourhoods like Pasir Ris, Yishun, Jurong or Hougang.
\n\u201cAnalysing resales of Pinnacle@Duxton homes, the only batch of BTO flats built in the Central Area since 2004, buyers who bought from HDB in 2004 (at $392,100 and $451,500 for four- and five-rooms) and resold in 2021 (at the average resale transacted prices of $851,868 and 1,001,289) saw their asset appreciate at 7.03% each year over the 17 years \u2013 a pace that outstripped the STI Index\u2019s 2.4% for the same period.\u201d
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nCheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:\u00a0cheryl@propertyguru.com.sg.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…HDB flats remain attractive as investment despite restrictive rules under PLH model<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Over the past 20 years, prices of resale HDB flats increased by 0.82%\u00a0quarter-on-quarter on average,...<\/p>\n","protected":false},"author":1,"featured_media":123704,"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-123703","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/12\/HDB-EIP.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-wbd","jetpack-related-posts":[{"id":122878,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-prime-area-housing-model-may-boost-demand-for-flats-in-nearby-areas\/","url_meta":{"origin":123703,"position":0},"title":"New prime area housing model may boost demand for flats in nearby areas","date":"October 29, 2021","format":false,"excerpt":"\r Future HDB flats launched under the PLH model have tighter rules\u00a0like an extended MOP period of 10 years, which may push potential buyers towards flats in city-fringe areas that are not subject to such restrictions. Analysts believe the stricter resale conditions for flats under the new prime location public\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/10\/singapore-prime-district.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":125800,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/three-bto-projects-face-further-delays-ang-mo-kio-site-picked-for-sers-offers-significant-redevelopment-potential-and-more\/","url_meta":{"origin":123703,"position":1},"title":"Three BTO projects face further delays, Ang Mo Kio site picked for SERS offers \u2018significant\u2019 redevelopment potential and more","date":"April 12, 2022","format":false,"excerpt":"\r Three BTO projects face further delays, Ang Mo Kio site picked for SERS offers \u2018significant\u2019 redevelopment potential and more5th April to 11th April 2022 The Housing and Development Board (HDB) informed flat buyers at three Build-to-Order (BTO) projects that the completion of their homes would be further delayed. Analysts\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2022\/04\/Yishun-Boardwalk-hdb.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":131591,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/compensation-for-ang-mo-kio-sers-residents-is-about-7-5-higher-than-previous-estimates-about-3-of-hdb-flat-owners-have-at-least-one-private-property-and-more\/","url_meta":{"origin":123703,"position":2},"title":"Compensation for Ang Mo Kio SERS residents is about 7.5% higher than previous estimates; About 3% of HDB flat owners have at least one private property and more\u00a0","date":"November 14, 2022","format":false,"excerpt":"\r Compensation for Ang Mo Kio SERS residents is about 7.5% higher than previous estimates; About 3% of HDB flat owners have at least one private property and more\u00a0\u00a08th November to 14th November 2022\u00a0 The compensation to be received by Ang Mo Kio residents whose Housing and Development Board (HDB)\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2022\/11\/singapore-overview.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":137258,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-extends-may-2023-sales-deadlines-singapore-grapples-with-housing-affordability-issues-and-more\/","url_meta":{"origin":123703,"position":3},"title":"HDB Extends May 2023 Sales Deadlines, Singapore Grapples With Housing Affordability Issues, and More","date":"June 5, 2023","format":false,"excerpt":"\r HDB Extends May 2023 Sales Deadlines, Singapore Grapples With Housing Affordability Issues, and More29 June to 5 May 2023 \u00a0 HDB\u2019s May 2023 BTO and Sale of Balance Flats (SBF) launch deadlines have been extended by three working days \u2013 from 5 June to 8 June 2023 \u2013 after\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2023\/06\/plantation-weave-parc-meadow-tengah-may-2023-bto-launch-1.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":61362,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/evolution-of-public-housing-in-singapore\/","url_meta":{"origin":123703,"position":4},"title":"Evolution of public housing in Singapore","date":"July 21, 2017","format":false,"excerpt":"\r View of HDB flats in the Ghim Moh area. 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