Press "Enter" to skip to content

HDB flat resale volume plunges 41.9% in Q2

Housing Board flat resale transactions plunged in the second quarter of this 12 months in the sunshine of the circuit breaker measures.

The variety of resale transactions fell by 41.9 per cent, from 5,893 flats offered in the primary quarter to three,426 flats in the second, in accordance with information from the HDB yesterday.

Compared with the identical interval final 12 months, resale transactions in the second quarter of this 12 months had been 45.four per cent decrease.

Singapore’s circuit breaker interval, when strict secure distancing measures had been put in place, lasted from April 7 to June 1.

Noting that final quarter’s resale volume was the bottom quarter gross sales on file since 2007, OrangeTee & Tie head of analysis and consultancy Christine Sun stated the decline could possibly be attributed to the tighter secure distancing measures imposed in the course of the circuit breaker, which prevented bodily home viewings from being carried out.

“Even with the usage of digital dwelling excursions, augmented actuality and e-open homes, some consumers face issue overcoming the psychological barrier of sealing the deal with out first inspecting the unit in individual.

“Most buyers would still prefer to assess the condition of the flat and have a better visualisation of the unit layout before making a purchase.”

The costs of resale flats inched up barely, with the resale value index at 131.9, up 0.three per cent from the earlier quarter.

The costs rose marginally after staying flat in the primary quarter of the 12 months.

Ms Sun referred to as this stunning, for the reason that costs of resale flats fluctuated extra dramatically in previous crises.

She listed as examples the Asian monetary disaster, when the HDB resale value index plunged over 9 successive quarters between 1996 and 1999; the Sept 11, 2001 assaults, when costs fell for eight consecutive quarters between 2000 and 2002; and the 2008 world monetary disaster, when costs slipped in 2009.

“As of now, the four rounds of aggressive stimulus packages unleashed by the Singapore Government seem effective in preventing a housing market meltdown or property price collapse. Currently, prices of flats seemed to be holding firm, with no apparent panic selling islandwide,” she stated.

Over in the HDB rental market, transactions additionally took a success.

The variety of authorized purposes to lease out HDB flats fell by 9.1 per cent, from 11,591 purposes in the primary quarter of this 12 months to 10,539 in the second.

Compared with the identical interval final 12 months, the variety of authorized purposes in the second quarter of this 12 months was 14.6 per cent decrease.

In complete, as of the top of the second quarter, there have been 57,693 HDB flats rented out, a 0.1 cent improve over the earlier quarter, when there have been 57,652 items rented out.

The HDB stated it’s going to provide about 7,800 Build-To-Order flats in Ang Mo Kio, Bishan, Choa Chu Kang, Geylang, Pasir Ris, Tampines, Tengah and Woodlands subsequent month.

Another 5,700 flats in Bishan, Sembawang, Tampines, Tengah and Toa Payoh might be out there in November.

Of these, the flats in Choa Chu Kang, Tampines North and Tengah may have a shorter ready time.

Looking forward, ERA Realty head of analysis and consultancy Nicholas Mak predicts there could possibly be extra headwinds in the economic system and employment market resulting in decrease HDB resale volume.

However, this could possibly be balanced out by the massive variety of new flats that would enter the resale market, having reached the top of their five-year minimal occupation interval.

“Some of these newer flats will be sold in the resale market at relatively higher prices than the older flats in the vicinity. Their transacted prices will contribute to the growth in the resale price index,” he stated.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *