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SINGAPORE: Resale prices in the public housing market rose 4.8 percent in 2020, an increase of 0.1 percent in 2019, according to preliminary estimates released by the Housing and Development Board (HDB) on Monday ( January 4).
According to flash estimates, prices in the fourth quarter of 2020 were up 2.9 percent from the previous quarter. Prices in the third quarter of 2020 increased by 1.5 percent.
READ: HDB resale transactions increase 127.3% in the third quarter after the end of the COVID-19 circuit breaker
The resale price index, which provides information on general price movements in the public housing resale market, rose from 133.9 to 137.8, HDB estimates showed.
The price increase in the fourth quarter of 2020 was the largest quarterly increase in about 10 years, said OrangeTee & Tie director of research and consulting Christine Sun. The latest peak was recorded in the third quarter of 2011, with an increase of 3.8 percent.
“The market recovery can be attributed to the large number of policy changes made in the past two years to make public housing more affordable for Singaporeans and enhance the appeal of older flats,” said Ms Sun .
“Many new apartments that have higher prices have also been traded in recent months, which may have ‘raised’ the general price index last quarter.”
READ: Assisted Living Options for Single Parents: 5 Changes HDB is Making to Make Housing More Accessible
Buyers were willing to “shell out the highest price” for select floors, Sun said, adding that a record number of 72 resale apartments were sold for more than S $ 1 million in the first 11 months of 2020.
A condo at Pinnacle @ Duxton sold for a record price of S $ 1.258 million in September 2020.
The long completion period of recent Build-to-Order (BTO) launches and rising prices for private homes may continue to divert demand to HDB’s resale market, Ms. Sun said.
“Couples who are still doing well in their jobs can continue their improvement plans, while those still affected by the pandemic can move from private homes to HDB apartments,” he added.
“This may result in more floors being put on the market, as well as more floors changing hands in the coming months.”
Resale apartment prices are expected to rise further by 2% to 5% in 2021, he said.
More detailed data for the fourth quarter of 2020 will be released on January 22, HDB said.
READ: Singapore’s economy shrinks 5.8% in 2020 pandemic
COMMUNITY CARE APARTMENTS BETWEEN BTO RELEASES
HDB announced Monday that it will offer around 3,700 BTO floors in Bukit Batok, Kallang Whampoa, Tengah, and Toa Payoh in February.
These include Community Care Apartments, a new type of public housing targeting buyers 65 and older, with senior features and subscription to care services.
In May, HDB will offer another 3,800 BTO flats in Bukit Merah, Geylang, Tengah and Woodlands.
“Given the economic uncertainty due to COVID-19, HDB is closely monitoring the housing market and will calibrate supply if necessary,” the board said.
