{"id":49345,"date":"2017-03-24T07:30:05","date_gmt":"2017-03-24T00:30:05","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/get-the-guru-view-hdb-resale-a-buyers-market\/"},"modified":"2017-03-24T07:51:28","modified_gmt":"2017-03-24T00:51:28","slug":"get-the-guru-view-hdb-resale-a-buyers-market","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/get-the-guru-view-hdb-resale-a-buyers-market\/","title":{"rendered":"Get the Guru View: HDB resale – A buyer\u2019s market"},"content":{"rendered":"


\nUpcoming BTO launches could draw demand away from the HDB resale market.
\nThe HDB resale market has seen prices stay flat since Q2 2015. With an increase in the grants available for use, will this market start to see a pickup in 2017? We give you the Guru View.
\nBy Chang Hui Chew
\nFor the HDB resale market, the past few weeks have been an interesting time.
\nIn late February, Minister for National Development, Lawrence Wong, announced that the CPF grants for HDB resale flats would increase from $30,000 to $50,000 for couples, and to $25,000 from $15,000 for singles, for four-room flats and smaller units. This increase in grants should help those young couples start their families sooner, as they have more incentive to buy a resale flat, rather than wait for a Build-To-Order (BTO) flat to complete construction.
\nIn this edition of the Guru View, we examine the performance of the HDB resale market in 2016, and look at some likely implications in this year.
\nFlat prices
\nDespite the fervour around private property, most Singaporeans live in HDB flats, and their resale performance is an important bellwether for Singapore\u2019s property market.
\nThe HDB Resale Price Index (RPI) has remained flat since the second quarter of 2015, hovering between\u00a0135 and 134 (refer to Figure 1). This is likely due to affordability curbs such as the Mortgage Servicing Ratio (MSR), which limits how much monthly income HDB flat buyers can use to pay their housing loans.<\/p>\n

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\nHDB resale flats remain a very price sensitive segment, with many HDB flats in the same area largely similar products, differentiated only by factors such as height. Sellers who wish to ask for higher prices often see buyers seek the next cheapest offering, a likely factor that contributes to the HDB RPI\u2019s lack of growth.
\nIn March 2014, the state also abolished the practice of Cash-Over-Valuation (COV), where buyers and sellers negotiated on the additional cash to be paid to homeowners above the agreed upon value of the flat. This practice led to soaring resale flat prices, as sellers, in a bid to outdo their neighbours, asked for higher COV.
\nWithout COV, sellers and buyers are now negotiating based on agreed upon valuations, rather than a perceived premium. This has led to a lot more sense in the process when sellers are pricing their HDB flats.
\nAt the same time, HDB resale volumes have improved since its low point in 2014. In 2016, total resale volume saw a year-on-year increase of 7.8 percent to 20,813 units, from 19,306 units the year before (refer to Figure 2). This was led primarily by a growth in transaction volumes in four-room and five-room flats.<\/p>\n

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\nUpcoming supply
\nSellers in the resale market also need to contend with BTO launches in 2017.
\nAt the end of 2016, Wong announced that the HDB would be launching over 17,000 BTO flats in 2017. Over 4,000 units were launched in February 2017\u2019s BTO exercise, with two popular mature estates, Clementi and Tampines, in the mix.
\nThe next exercise in May is more highly anticipated, with the up-andcoming Bidadari estate offering more than 1,300 units. In 2016, Bidadari\u2019s BTO launches saw more interest than supply could meet, especially with the larger units among applicants.
\nBidadari\u2019s popularity stems from the government\u2019s plans for the areaas part of the extended decentralised Central Business District in Paya Lebar, as well as its convenient location in the city fringe, just minutes away from Dhoby Ghaut via public transport. Furthermore, the state\u2019s urban planners have drawn up plans for a garden estate, with lakes, parks and suburban shopping centres.
\nWhile the HDB resale market continues to be propped up by demand from those who need to move with a degree of urgency, or who choose not to wait for a new flat to be built, the relatively lower price and the attraction of being the first occupant of the unit continues to draw buyers to BTO launches. This could potentially drain demand away from the HDB resale market, another factor that continues to keep prices in that segment suppressed.
\nBuyers undecided on the route to take, but are looking to live in popular estates could potentially wait for the next BTO launch, trying their luck at the ballot. It is only if they are unable to secure a BTO unit that they decide to enter the resale market.
\nNot so great expectations
\nAccording to PropertyGuru\u2019s Property Sentiment Survey for H2 2016, more than half of the respondents felt that HDB resale prices are likely to rise over the next five years, despite the weaker macroeconomic climate and continued affordability curbs.
\nThis is not necessarily a worrying sign, and suggests sense in the market. Most Singaporeans have their wealth tied up in their real estate assets, which are largely HDB flats. An increase in prices, especially one that is sustainable, will also imply an increase in wealth for many Singaporeans.
\nMore importantly, price increases will need to come with an overall increase in wages, to prevent issues of affordability.
\nThe increased grants are likely to help Singaporeans who want to buy a resale flat, especially in the more expensive mature estates. In the short term, they might motivate individuals who have been waiting on the sidelines to enter the market. Longterm however, the increase in grants might not necessarily move the needle significantly, if wages are unable to rise with housing prices.
\nTo read more on the HDB resale market and rental market outlook, visit: bit.ly\/hdboutlookh12017<\/p>\n

This article was first published in the print version PropertyGuru News & Views. Download PDFs of full print issues or read more stories now!<\/p>\n


\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Get the Guru View: HDB resale – A buyer\u2019s market<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Upcoming BTO launches could draw demand away from the HDB resale market. The HDB resale...<\/p>\n","protected":false},"author":1,"featured_media":49346,"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-49345","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\/2017\/03\/Guru-View-HDB-Resale-Price-Index-and-Transcation-Volume.jpg?fit=792%2C442&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-cPT","jetpack-related-posts":[{"id":93025,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-resale-prices-up-0-1-govt-to-offer-bto-flats-in-punggol-and-yishun\/","url_meta":{"origin":49345,"position":0},"title":"HDB resale prices up 0.1%, govt to offer BTO flats in Punggol and Yishun","date":"July 3, 2018","format":false,"excerpt":"\r Demand for HDB resale flats is stronger due to interest from displaced en bloc owners and positive sentiment in the private residential market.\u00a0 Prices of HDB resale flats edged up 0.1 percent in Q2 2018 on a quarterly basis, according to flash estimates released by the Housing Board on\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":113092,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/up-to-17000-bto-flats-to-launch-next-year-lawrence-wong\/","url_meta":{"origin":49345,"position":1},"title":"Up to 17,000 BTO flats to launch next year: Lawrence Wong","date":"December 16, 2019","format":false,"excerpt":"\r This is to meet the additional demand for houses after key policy changes.\u00a0 National Development Minister Lawrence Wong revealed that HDB will be launching 16,000 to 17,000 Build-To-Order (BTO) flats next year to meet additional demand after the roll-out of key policy changes this year, reported The Straits Times.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":72659,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/temporary-blip-in-hdb-resale-transactions-dwindling-first-timer-demand\/","url_meta":{"origin":49345,"position":2},"title":"Temporary blip in HDB resale transactions, dwindling first-timer demand","date":"November 23, 2017","format":false,"excerpt":"\r View of HDB flats in the Ghim Moh area. (Photo: Chen Siyuan: Wikimedia Commons) The latest data showed a 0.7 percent drop in HDB resale prices in Q3 as compared to the previous quarter. We investigate some reasons for this. By Hock Meng Tay The latest HDB resale data\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2017\/11\/GuruView-1024x281.png?fit=1024%2C281&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":44908,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/higher-demand-expected-for-hdb-resale-flats-experts\/","url_meta":{"origin":49345,"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":113352,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-resale-prices-up-0-4-in-q4-2019\/","url_meta":{"origin":49345,"position":4},"title":"HDB resale prices up 0.4% in Q4 2019","date":"January 2, 2020","format":false,"excerpt":"\r As such, the HDB Resale Price Index (RPI), which measures overall price movements of resale HDB flats, is now 131.4.\u00a0 Resale prices of HDB flats have continued to climb in Q4 2019, raising by 0.4% from the 0.1% increase in Q3 2019, according to the latest HDB flash estimates.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2020\/01\/HDB-flash-estimates-Q4-2019.png?fit=600%2C343&ssl=1&resize=350%2C200","width":350,"height":200},"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":49345,"position":5},"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":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/49345"}],"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=49345"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/49345\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media\/49346"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=49345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=49345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=49345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}