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Prices of HDB resale flats in 4Q2020 increase 3.1% q-o-q

By Charlene Chin

/ EdgeProp Singapore |

January 22, 2021 10:55 PM SGT

SINGAPORE (EDGEPROP) - Prices of HDB resale flats rose for its third consecutive quarter in 4Q2020, increasing by 3.1% q-o-q, according to HDB public housing data.

In 4Q2020, a total of 7,642 HDB resale units changed hands, which was 1.9% lower than the 7,787 units transacted in 3Q2020. However, the transaction volume in 4Q2020 was 20.6% higher y-o-y, based on HDB data.

“Against a backdrop of the worst economic crisis in living memory and a growing supply of HDB flats, the rapid rise in property prices was unexpected. Underpinning the resilience of the HDB market is an extensive slew of stimulus measures launched by the government to support the economy,” comments Christine Sun, senior vice-president of research & analytics at OrangeTee & Tie.

“Large scale government support on multiple fronts has limited income loss and prevented massive unemployment among Singaporeans. Most workers were able to keep their earnings with the help of various Jobs Support and Wage Credit schemes,” adds Sun.

“Some buyers were confident that they had the ability to service their housing loans and proceeded with their new home purchases.”

Sun believes that the HDB market is yet to see a risk of a housing bubble, “Typical signs of an asset bubble include the decoupling of prices from housing income, excessive speculative buying activities and many buyers overleveraging in their property purchase.”

“Many measures have already been put in place to prevent some of these scenarios from occurring,” she adds.

Meanwhile, the number of applications approved to rent out HDB flats increased by 3.4% to 8,472 cases in 4Q2020 from 8,196 cases in 3Q2020,. However, the number of approved applications in 4Q2020 was 29.9% lower y-o-y, according to HDB data.

Read more: BTO or resale flat?

In February, HDB will offer about 3,700 Build-To-Order (BTO) flats in Bukit Batok, Kallang Whampoa, Tengah and Toa Payoh. This includes the new Community Care Apartments in Bukit Batok, which are integrated senior-friendly housing with care services.

In May, HDB will offer another 3,800 BTO flats in Bukit Merah, Geylang, Tengah and Woodlands.

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