HDB Monitoring if Cooling Measures Impacts Prices of Smaller and 4-Room Resale Flats

The prices for smaller as well as four-room housing board resale flats are to be monitored by experts if any hike is observed after cooling measures. This is due to the fact that some aspiring analysts and home buyers have expressed major concern related to the curbs posed on the owner’s private properties may further moderate the demands for larger HDB resale flats & five-room apartments. These scenarios may increase demands and as a result, the prices for smaller resale flats and four-room apartments may also increase.

Right from September 30th, the owners of private properties need to wait for almost 15 months after the sale of their current home to buy a non-subsidized resale flat at the Housing Board. However, owners that have crossed the age gap of 55 and above may move from private accommodations to smaller resale flats or four-room flats. If we consider the wait-out period of 15 months, when there is a temporary measure with moderate demand, it is important to recognize that there are more seniors that need to look for retirement adequacy. With this, it is important to provide them avenues and options for the right size condos and four-room apartments or smaller HDB flats that may serve their needs better.

Mr. Lee, National Development Minister, also stated that a large number of owners from private properties are now looking forward to buying HDB resale flats and this count has doubled within the last two years. This scenario has a direct impact on the property cycle, especially when they try to sell private properties while moving to the HDB resale market as in this situation they can pay higher cash to close the deals fast.

When the recent cooling measures were posed nine months after the past curb round, there were no more rules that could provide a clear vision of the length between the two cooling measures. It is necessary to look after market conditions to decide whether everything is moving as per economic fundamentals or not. If they have increased beyond limits, the agencies need to take relevant measures to bring them down.

The cooling measures that were applied on September 30th were trigged by the 7.8% rise in the HDB resale prices during the first nine months of the year 2022. It is further fuelled by hot money from the downgraders of private property that are now moving to the HDB resale market. Mr. Lee recently stated that the main aim behind these measures is to moderate the HDB resale market demands. The resale market showed soft performance for the past six years prior covid-19 pandemic.

However, this scenario further increased resale prices while creating eye-catching headlines on the news within the past two years. The experts in the Singapore property market are committed to doing what is necessary to lead a stable property market with affordable housing services in Singapore.

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