It has been a long duration of 14 months to observe a consecutive rise in the Housing Board resale prices. As per the recent data of August month received from the SRX real estate portal, the property resale prices climbed at a pace of 1.1% in comparison to July.
Moreover, the resale prices are high by 13.7% this year when compared with the August month of 2020. With these fluctuations in the price, it is expected that September month prices may hit a record high in the scenario of strong demands.
Although August month came like a hungry ghost month, the construction delays increased, and flat resale demands strengthened with a lesser number of sales. If we look at the reports from the previous month, five Built-To-Order housing projects are already experiencing longer delays due to Greatearth – the main contractor’s decision to run after ongoing financial difficulties. The expected dates for completion of these famous BTO projects as well as many others, got delayed due to supply disruptions and lack of manpower. Furthermore, the covid-19 pandemic left a considerable negative impact on the construction sector.
Several affected buyers have now decided to pay an additional amount for resale flats, even if available units are less suitable for their needs since these flats are in ready-to-move condition. With a well-settled home, they can now plan their life with enhanced certainty.
As per data obtained from SRX, property prices are increasing by a considerable level for both non-mature and mature estates. But even after a considerable rise in the prices at most locations, buyers are still willing to match the high asking price to meet their immediate demands.
The chances are that buyers have already realized the fact that with the greater number of sellers as compared to buyers in the market, the property prices may rise further in the near future. Therefore, they are willing to make timely investments to continue a secure and happy family life.
Almost 2,748 HDB flats exchanged hands in the previous month, and this count was approximately 3.2% higher than the month before. The more surprising factor is that 26 resale flats in the month of August were sold with an estimated price of around $1 million, and this is a record number in history.
The most expensive unit on the list was the five-room flat located at Natura Loft in the Bishan estate. This flat was sold at a huge price of $1.28 million.
Around 26 resale estate properties in the housing area made up approximately 0.9% of the total resale transactions of the previous month. This count brings the total number to 151 for such flats, and it is higher than the previous eight months of 2021.
Reports reveal sales of 82-million-dollar flats in the previous year. As the government interventions are reduced in the real estate market these days, the HDB flat resale prices may rise further in the coming months. Forecasts reveal that the resale price index may rise from 8% to 12% by the end of this year.
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