The town of Yishun may have a good number of private condominiums, but majority of housing options here are still Housing Board (HDB) homes.
(Yishun HDB flats. Image courtesy of mailer_diablo.)
This relatively large supply of HDBs means that despite the fine amenities and convenient location that Yishun possesses, its HDB prices have long been among the lowest in the country.
(Source: Streetsine Analytics)
From the above graph, which compares the average price per sq ft (psf) of Yishun HDBs to that of all HDBs between March 2011 and March 2012, it is clear that HDB units in the Yishun estate have been consistently priced below average. Even with fluctuations beginning late last year, Yishun psf prices have comfortably remained more than $30 psf lower than the national average. While prices of the estate are generally on the incline, it is safe to say that they will not reach national average prices any time soon.
However, it should be noted that Yishun prices have inched a little bit higher over the past year. As of March this year, the difference between the average HDB price in Singapore and the average HDB price in Yishun is $34 psf, up from $37 psf exactly one year ago.
The Yishun estate has been experiencing price fluctuations since September last year. The fluctuations can be caused by a host of factors, including the migration of demand from the private housing sector to the public housing sector—especially since December 2011’s tough property cooling measures were rolled out.
While the average psf price of all estates across Singapore appears to have reached its peak and looks set to start falling, it remains to be seen if Yishun psf prices will follow suit, or continue with the fluctuations.
It can be observed from the above graph, which depicts the resale prices of Yishun HDB units and those across the country over the past year, that median prices of Yishun resale homes are closely mirroring that of the country’s over resale segment over the past year, save for fluctuations that occurred in the earlier half of 2011.
On both the Yishun and national fronts, it should be noted that resale prices have jumped between November and December last year. This could be a collateral effect of the 10% additional buyer’s stamp levied on foreign homebuyers, which took effect on December 11 last year. It is possible that with the convenience and tranquility that Yishun boasts, homebuyers could have taken the opportunity to continue buying Yishun HDBs up until January this year, even when demand for resale HDBs in general dipped that same month.
However, with the authorities continuing to release new Build-to-order HDB flats and developers pushing out new mass-market launches, it is likely that resale HDB prices at the Yishun estate began to slide in February in response to this lower demand.
The above table summarises HDB transactions that occurred in the month of March. Yishun’s sheer size has ensured that it has contributed significantly to last month’s total sales volume.
For our district guide to Yishun, click here.