It is all-engines-go in the local real estate market as both private and public housing segments report back with rising numbers.
Consistent 3-year rise in resale HDB flat prices
Lower resale HDB flat prices have brought buyers back into the market as resale volume rose 6.1% last year. In fact, the number of resale HDB flats sold have risen consistently over the last 3 years. 22,077 resale flats exchanged hands in 2017. 17,318 units were sold in 2014, 19,306 in 2016 and 20,813 in 2016.
Though prices have yet to go on the rebound, it is positive sentiments all around. Some analysts are going as far as to say that 2018 may be the year prices of HDB flats stop falling. With 2018 as the starting point, there are expectations for HDB prices to rise 1% to 2% by the end of the year.
Part of the industry confidence comes from HDB having halved the resale transaction duration. This new move may speed up the resale process and allow more flats to exchange hands within the same time period. 2018 may see 22,000 to 24,000 resale flats exchanging hands.
3,600 new flats planned for HDB launch in February
The rental market could also see a spike as those who are displaced from the numerous collective sales of HUDC estates last year will also be looking for new homes. Though there are new private residential units in the market for the taking, many may still prefer the larger-sized units in mature HDB estates.
Next month, HDB will launch 3,600 new BTO flats in Choa Chu Kang, Geylang, Tampines and Woodlands. While this may take some attention away from the resale market, HDB flat seekers who are more concerned about location than price may still choose to buy resale.