Singapore private homes and HDB resale prices are up in Q2 2022

Read related article: Wallich Residences integrated development Guoco Tower won FIABCI World Prix d’Excellence Award

The Housing and Development Board (HDB) has announced two more alternatives for rehousing in the Selective En Bloc Redevelopment Program (SERS) to provide greater options and satisfy the diverse housing requirements of residents. Additionally, Singapore saw private home prices as well as HDB resales prices rise at a an increased rate in the second quarter of 2022 when compared with the previous quarter.

The Housing and Development Board (HDB) announced two new rehousing options in the SERS that will provide greater options and cater to the various housing requirements of residents.

The first option is that SERS homeowners will have the option of purchasing three-room or larger flats under a shorter lease period of 50 years instead of a brand new 99-year lease, if that it will keep the owners of the flat up to the age of 95.

The second option permits residents of SERS to take advantage of the SERS site to avail the lease Buyback Scheme (LBS) to lease their apartment.

Additional options will be available to flat owners who are eligible beginning at Ang Mo Kio Ave 3 SERS site.

“It considers the feedback of some residents who feel that they don’t require a new 99-year lease to get a replacement property and want to relocate into a new flat that is similar to the one they have currently, without money-based top-ups,” said HDB.

It also stated that the two alternatives can “also become available to owners of flats of blocks 212-218 of Marsiling Crescent/Lane, whose flats were announced to be available for purchase on the 26th of May 2022 in connection with the development and expansion of Woodlands Checkpoint”.

This decision comes after a few flat owners were concerned about having to pay more to buy similar-sized homes within the same neighborhood. Around 600 households were affected by the most recent Ang Mo Kio SERS exercise. In addition HDB has changed the minimum occupancy period (MOP) guideline for the replacement of flats under SERS has been revised by HDB. Buyers are able to sell their new flats on the market for five years after they have received their keys.

Prices for private homes in Singapore increased at a higher growth rate 3.2% in the second quarter of 2022. That’s nearly five times more than that 0.7% increase registered in the preceding quarter, as per preliminary estimations by the Urban Redevelopment Authority (URA).

Catherine He, Head of Research at Colliers She attributed the rise in price to “the successful launches that were sold at higher prices than benchmarks”.

Piccadilly Grand along with LIV@ MB For instance, they sold more than 70% of their products on the day of launch.

“Units in Piccadilly Grand were sold at $2,175 per sq ft, while units located at the LIV@MB were offered for a median of $2,405 per sq ft. The result was that prices increased six% in the second quarter of 2022.” Huttons Asia reported. Huttons Asia.

In this way, residential property prices increased by 3.9% in the first second quarter of 2022, despite the cooling measures that were rolled out by the government on December 20, 2021.

“The volume of demand is far more than the supply backlog as Singapore is able to recover from its pandemic years,” said Leonard Tay Director of Research and Development at Knight Frank.

As per Dr. Tan Tee Khoon, Country Manager of PropertyGuru Singapore, given the potential appreciation in the value of capital for private property and the current good performance of the rental market for private homes the demand for private property is likely to remain among those looking to purchase for an investment property. But, they’ll need consider the potential benefits against the cost of paying more A Purchaser’s Stamp Duty (ABSD).

The latest estimates of The Housing and Development Board (HDB) showed that the resales prices of HDB flats increased by more quickly that of 2.6% in Q2 2022 as compared against that 2.4% hike registered in the prior quarter.

On an annual basis, HDB resale prices rose 11.8%.

Christine Sun, Senior Vice-President of Research and Analytics at OrangeTee & Tie, said that the steady price rise was not a surprise given the dramatic increase in confidence of buyers.

“Our economy is nearly fully open and growth has accelerated more quickly than other nations. Additionally, the public housing market is typically less prone to fluctuations in macroeconomics in comparison to investments properties.”

Additionally, Huttons Asia observed that the interplay between “market dynamic due to an increase in quantity of BTO flats as well as the price resistance of buyers has been effective in stabilizing the rate of price growth”.

Huttons anticipates HDB prices for resales to increase by 10% throughout 2022 in the wake of an adjustment to more stability in the second quarter of 2022.

There are a variety of reasons that have led to the rising of HDB prices for resales as per the Dr. Tan Tee Khoon, Country Manager at PropertyGuru Singapore. Apart from the ongoing BTO construction delays , which have forced young families into the market for resales There is a persistent purchasing preference for larger resales flats in older HDB estates located on the city’s fringe.

In the HDB transactions for resales in Q2 2022 (as as of July 1, 2022) the most sought-after flats are the 4-room flats (42.7%), followed by flats with five rooms (25.8%). In both cases, HDB upgrades and new buyers are aiming for these larger flats, driving the demand and prices rising.

A 16,623.7 square meter executive condo (EC) site at Bukit Batok West Avenue 5 is listed for sale in the confirmed list of Federal Land Sales (GLS) Programme for the first quarter of 2022, as announced by through the Housing and Development Board (HDB).

This 99 year leasehold site is expected to provide about 495 housing units.

The competition for the site is due to close on the 13th of September. It will be batched along with the two Urban Redevelopment Authority (URA) residential sites located at Lentor Central and Lentor Hills Road.

Huttons Asia noted that the debut of the site will be “the the third site that will be utilized for EC development in the space of an entire year”.

“The three sites could offer up to 1500 EC units to purchase,” it said.

Huttons believes that its Bukit Batok West Avenue site will attract as many as eight bids. The expected bids being between $640 and $680 for sq ft/plot percentage (psf and ppr).

The site is within various secondary and primary schools, in addition to Millennia Institute. Le Quest shopping mall and West mall will offer future Residents F&B and entertainment alternatives. The closest MRT station to the mall is Bukit Batok MRT station, which is located on the North South Line However, it is expected to change once it becomes the Jurong Region Line (JRL) will begin operating in 2024.

The city-state was ranked as the 53rd-lowest priced home market in the world by Demographia as part of their International Housing Affordability rankings, published in Singapore Business Review.

This is a fact given that Singapore recorded the median for housing affordability of 5.8. It is noteworthy that the median of 5.1 and over is considered to be extremely expensive, however, an average of 3.0 and lower is considered affordable.

“Singapore’s median multiple increased from 4.6 in the year 2019, and then an unaffordable 5.8 in 2021, a reflection of the impact of the pandemic crisis,” said Demographia.

It was noted that HDB’s objective of inciting Singaporeans to own their own home has been accomplished in 2020, when the homeownership rate reached 88%.

This year’s rankings show that Pittsburg, Pennsylvania in the United States emerged as the most affordable housing market and the most expensive is Hong Kong.

Demographia’s research rates affordable housing for the middle class across eight countries. These include, Australia, China, Canada, New Zealand, Ireland, Singapore, the United States and the United Kingdom.

million dollar HDB flats in Singapore continue to draw attention however, they represent less than 1% from all HDB flats transactions. But they are a significant part of the overall picture, and as HDB flat resales increase as do the billion-dollar HDB flat sales.

From the 1st of July in 2022, 163 million dollar flats were sold in 2022. In particular, Woodlands and Pasir Ris were the first to receive million-dollar flats on May 20, 2022. If this trend continues to grow we could see another record-breaking year for million dollar flats by 2022.