SINGAPORE – Demand for Housing Board resale flats remained sturdy in July, with costs persevering with to climb and extra flats altering palms regardless of tightened Covid-19 measures within the second half of the month.
HDB resale costs rose for the thirteenth straight month, advancing 0.5 per cent in July in contrast with June, in accordance with flash information from actual property portal SRX on Thursday (Aug 5).
Nonetheless, the tempo of worth features slowed for the second month, which might be a sign of worth resistance from patrons, famous Huttons Asia senior director of analysis Lee Sze Teck.
12 months on yr, resale costs elevated 13.2 per cent from July final yr and are simply 1.2 per cent off their peak in April 2013.
The rise in costs for resale flats final month was broad-based, climbing for each mature and non-mature estates, and nearly all room varieties. Solely costs for government flats dipped, by 0.6 per cent.
A complete of two,662 resale flats modified palms final month, rising 15.2 per cent from the month earlier than.
On July 22, Singapore returned to section two (heightened alert) the place group sizes have been minimize to 2 folks, amongst different measures.
ERA Realty head of analysis and consultancy Nicholas Mak stated that regardless of the viewing restrictions, the variety of HDB resale flats offered in July nonetheless reached the best stage previously 4 years.
“This confirmed that dwelling patrons are getting accustomed to the pandemic and wouldn’t let social distancing measures stand in the way in which of shopping for their dream properties,” he stated.
The “relentless growth” of HDB resale costs was pushed by sturdy demand from dwelling patrons preferring the understanding afforded by resale flats, somewhat than danger additional building delays in the event that they have been to purchase Construct-To-Order (BTO) flats, added Mr Mak.
The current experiences of patrons paying money over valuation (COV) in HDB resale transactions additionally propped up housing costs, he stated.
COV is paid when a resale flat is offered above its precise HDB valuation; the distinction may be paid for less than in money by the client.
Huttons’ Mr Lee famous that the variety of flats older than 45 years transacted final month was round 51 per cent greater than a yr in the past.
Moreover, about 75 per cent of the transactions final month – or 144 items – have been three-room flats, he added.
“It might be empty nesters rightsizing to go well with their retirement wants,” stated Mr Lee.
Final month additionally noticed 19 resale flats change palms for no less than $1 million, holding regular from the month earlier than.
The costliest HDB flat offered final month was a $1.225 million five-room unit at The Pinnacle @ Duxton.
The 19 million-dollar flats offered made up 0.7 per cent of final month’s whole resale transactions.
This brings the whole variety of such flats to 125 within the first seven months of this yr, in what has already been a file yr for million-dollar flats.
Ms Christine Solar, senior vice-president of analysis and analytics at OrangeTee & Tie, stated “worth bidding wars” have been noticed by property brokers for some common flats as eager patrons make barely greater affords to safe selection items.
“Some patrons could not thoughts paying barely extra to safe a unit now as they might really feel that competitors may proceed to accentuate given the restricted housing inventory,” she stated.
“Apart from, they don’t seem to be ready additional as costs of flats usually are not prone to fall within the close to future since our financial system is recovering,” she added.