SINGAPORE (EDGEPROP) - HDB resale prices have risen 1.4% q-o-q in 3Q2020, based on flash estimates by the board.

The increase marks the largest quarterly price hike over seven years since 1Q2013, when HDB resale prices increased by 1.3%, notes PropNex.

The price gain in 3Q2020 is also the fifth consecutive quarter when HDB resale prices stayed above the negative territory, providing further evidence that the HDB resale values have bottomed, and that the market has started to stabilise after six years of decline from 2013 to 2018, says PropNex.

Year-to-date, HDB resale prices have increased by 1.7% as compared to the end of 2019.

PropNex is bullish on demand for the HDB resale market, as it presents one of the most affordable housing options in Singapore. “The new housing grant announced in September 2019 has gained traction with buyers and [propped-up demand in] the HDB resale market,” says Wong Siew Ying, head of research and content at PropNex.

“With the policy change, first-time buyers may receive up to $160,000 in housing grants (comprising the Enhanced CPF Housing Grant, CPF Housing Grant, and Proximity Housing Grant) to help fund the purchase of resale flats. In addition, some buyers with more urgent housing needs may opt for resale flats, given the longer waiting time for the completion of some Build-to-Order HDB projects,” she notes.

PropNex projects that HDB resale prices could potentially rise by 2.5% to 3% for the whole of 2020.