7th May 2021
The Business Times & Straits Times reported that 21 million-dollar HDB resale flats were sold in April 2021.
Overall, HDB Resale Flat prices rose for 10th straight month. Month-on-month comparison ie, April-on-March π up by 1.2%.
For the period from January to April 2021, 74 HDB flats were sold for π² more than S$1 million! 74 units sold as of April 2021 as compared to 14 of such units sold in the same period 2020.
What are the contributing factors or Possible reasons spurring the demand of Resale HDB flats?
Affordability & The need for decent living space:
Given that prices of Private Properties are rising, it's likely that more home owners are purchasing resale HDBs which are viewed as the more value for money option.
If I have to choose between these 2 home purchase options -
Option 1
Forking out slightly over S$1.xm for a high floor, relatively new & sizeable 1,000 odd sq ft 5-Room HDB located in a popular and sought-after location.
Option 2
Forking out the same S$1.xm for a 1 bedder 99-leasehold condominium located in Central region of Singapore or a executive condominium.
I will undoubtedly go for Option 1 if I am buying for home stay. I will welcome the space (yep! thinking of all the work-from-home and home-based learning arrangements = "fighting" of territory among family members! π) and the perceived attractive valuation of the well-located 5-Room HDB.
Effect from Covid-19 pandemic π·
Projected delay in Build-To-Order flats BTO due to tightened restrictions on arrival from India and Bangladesh. Home buyers particularly newly wed couples are not inclined to wait years for their BTO to be ready. They will choose to purchase resale HDB flats instead.
"A penny for your thoughts, Karen?"
The demand for Resale HDB flats and the seemingly expectation of the continued rising of HDB Resale prices may have brought about this very question from some of my clients and friends -
"Should I sell my HDB flat now?"
Coincidentally, my friend called me on the very day after I just left a client's place having submitted a HDB Resale Application that she also intends to sell her 5-Room HDB.
After analyzing the past sales prices at her block and nearby blocks, I arrived at an indicative valuation that is below what she has purchased the flat for, a few years ago. Potentially, she might have to sell her flat at a loss if we go strictly by the indicative valuation. Despite sorting out the facts and numbers with her, she insisted that she is mentally prepared to sell her flat at a potential loss.
Perhaps with analysts expecting HDB Resale prices to continue rising by another 7 to 10%, who knows what the outcome will be then? I might be able to transact with a record high COV?
Choosing to be optimistic to deliver positive outcome! Sounds very cliche? π
After all, I have just achieved a personal milestone by breaking my own record "One shot One kill" Resale HDB flat sold with COV with only 1 viewing.
I had my blessed "One shot One kill" moment for rental cases but never pertaining to the sales of a home.
To some, this may not be a big deal. But to me, this is my first home sale transacted with only 1 viewing conducted! Transacted with COV as well! π
I attribute my blessed moment to the current economic climate, my hard work negotiation and doing what I am at good at doing π!
Now, before you rush off thinking that Selling off your HDB flat now is best option for you, please consider your current circumstances and have a clear understanding of the rationale behind the decision.
In fact, the latest HDB flat that I have sold belong to a client who wish to move closer to their parents. The decision to sell has nothing to do with the current economic climate nor the latest news insights or trends.
π Need a third-person objective perspective or simply a listening ear? π
If you need a third-person objective point of view to your housing options or decision, I am just a call or message away.
Source: The Business Times, The Straits Times 7th May 2021
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