HDB resale flat prices climb 2.8% in 2Q2022 transaction volume soften for third quarter

According to HDB, 6,819 resale apartments were transacted in 2Q2022, concerning 1.7% lower than the 6,934 apartments marketed in the previous quarter. Usually, deal activity often tends to pick up in the second quarter after a lull in the initial quarter, claims Lee Sze Teck, Huttons Asia senior director of study. “This is the 3rd quarter of decline as well as points to signs of the marketplace shedding momentum,” he adds. “It is likewise the most affordable quarterly sales considering that the circuit breaker in 2Q2020.”

Based upon HDB resale purchase information, typical prices of 3-, 4- and five-room resale apartments ranged from $368,000 to $610,000 in 2Q2022– up by 1.7% to 3.0% from the typical resale prices in 1Q2022 of $358,000 – $600,000. “With more newly MOP apartments expected to strike the resale market in the coming months, we anticipate that average rates will remain firm,” says PropNex’s Wong.

Numbers launched by HDB revealed that resale level costs increased by 2.8% q-o-q in 2Q2022, building on the 2.4% development in 1Q2022. The final figures launched were more than the 2.6% flash estimate launched on July 1, claims Wong Siew Ying, PropNex head of study & material. This brings the 1H2022 HDB resale price boost to 5.3%.

Copen Grand EC

Transaction data showed that non-mature towns such as Yishun (visualized), Sengkang, Punggol as well as Woodlands were the most popular estates in 2Q2022

” The trend of million-dollar flats showed no indicators of abating,” claims Huttons’ Lee. “They comprised greater than 1% of total resale level purchases and also can exceed 300 in 2022. There might be much more larger flats in non-mature estates breaching the million dollar mark in the months ahead.”
Still, more buyers are withstanding paying higher costs for a resale level, includes Huttons’ Lee. It was observed that there is an enhancing number of resale apartments whose negotiated cost matches the valuation cost, leading to absolutely no money over valuation.

Transaction data revealed that non-mature towns Sengkang, Punggol, Yishun, Woodlands and Jurong West were one of the most prominent estates in 2Q2022, representing over one-third of the quarter’s deals consisting of a variety of flats that have just recently accomplished the minimal profession duration (MOP) amongst the resale purchases, adds Wong.

“With interest rates set to rise additionally, some buyers might make a decision to play it safe as well as choose to purchase a resale flat, which is usually more economical contrasted to an exclusive condominium,” includes Wong.
In spite of stronger resale rates, some flat proprietors may be much less inclined to market as they perceive that the price of getting a substitute house of a similar dimension would be high in the present market, according to Wong. “This continuous demand and also supply dynamics is anticipated to continue to be supportive of HDB resale prices over the following couple of quarters,” she adds.

Figures launched by HDB showed that resale flat costs increased by 2.8% q-o-q in 2Q2022, structure on the 2.4% development in 1Q2022. According to HDB, 6,819 resale flats were transacted in 2Q2022, regarding 1.7% lower than the 6,934 apartments offered in the previous quarter. It was observed that there is an enhancing number of resale flats whose transacted price matches the assessment rate, leading to absolutely no cash money over evaluation. HDB resale level costs must trend in the direction of more stability for 2H2022. These consist of new buyers who prefer ready-built apartments, purchasers that have been valued out of the private domestic market, upgraders in search of a larger flat, as well as those who have offered their exclusive house as well as are looking to acquire an HDB flat on the secondary market.

HDB resale flat prices should trend towards even more security for 2H2022. “Rising rate of interest and also even more economical BTO apartments with a much shorter building and construction period will certainly draw away some demand far from the resale market,” according to Huttons. Buyers of a BTO flat will also be able to delay their payment till essential collection, which will enable customers to aid the present high rate of interest environment. Huttons anticipate HDB resale rates to boost approximately 10% in 2022.

PropNex on the other hand, is predicting complete year boost of between 7% and 9%. “The HDB resale market gets on track to attain an additional year of healthy price growth,” PropNex’s Wong concurs. “The tight resale level supply is assisting to prop up rates amidst steady demand from different teams of customers.” These consist of new homebuyers who favor ready-built flats, customers who have been priced out of the exclusive household market, upgraders searching for a larger level, along with those that have actually marketed their private house and also are seeking to buy an HDB flat on the secondary market.
HDB Resale Price Index

Despite firmer resale prices, some level owners might be much less likely to market as they view that the price of acquiring a replacement residence of a similar dimension would certainly be high in the existing market

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