HDB fearless estimates stressed the increase of resale price index which is 0.2% in just Q2 alone of this year following staying flat during the Q1 of 2020.
Though the Covid -19 has had a big impact on the property prices of the private market, resale prices over HDB flats have maintained it secured and stable over two recent quarters.
HDB flash appraisal showed a 0.2% increase in the resale price index during Q2 of 2020, following the Q1’s staying flat of the same year.
“We warn you of too much reading over the prices while the transaction bulk around Q2 2020 is foreseen to be around 75 % lesser than the 2020’s Q1. The decreased volume doesn’t magnify the whole property market,” said the Director of Research, Huttons Asia, Lee Sze Teck.
Per the resale caveat, statistics from data.gov.sg in April and May have transacted at least 789 flats for resale, meaning they are lower than units sold in the same months of 2017 and 2019.
Orange Tee and Tie explained the reduced resale volume was due to a pandemic and halting of house shows during the controversial circuit breaker period.
“Physical house showings play an integral role in the resale of the market because most buyers favour more on ocular inspection of the property before purchasing them. Perhaps they want to check the condition of the property and its neighbourhood. And because there is no property showing or viewing policy, resale demand has slowly decreased as of the last quarter,” stressed Christine Sun, Orange Tee and Tie’s head of research and consultancy.
She emphasized that the same firm’s prices are indicative of some panic selling taking place in the property market business in these trying times, the Covid-19. This happens while the market may have been sustained by Singapore’s sturdy stimulus bundle.
“Several owners also show properties uniquely following the existing Circuit Breaker period. They may have been given more importance to their homes during this pandemic because of the new normal, work from the home scheme and perhaps awkward to dispose of their flats at a hugely discounted price. Furthermore, other factors like the available BTO flats and number of units under the Minimum Occupation Period or MOP would have a stronger impact over HDB resale market and on its prices in the future,” she added.
With this in mind, Christine Sun never expects a big price cut, provided Singapore’s economy does not worsen and unemployment numbers remain average.
” We anticipate the entire HDB resale cost to run from 1-2 percent this year.”
HDB divulged in August that more than 7,800 Build-To-Order units will be rendered in Choa Chu Kang, Ang Mo Kio Pasir Ris, Tengah, Geylang, Woodlands and Tampines. Last November, another flat will be favoured by Bishan, Tengah, Sembawang and Toa Payoh.
There will be shorter waiting hours for the units in North Choa Chu Kang, Tampines and Tengah by November.
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