Resale prices in Singapore’s public housing market increased by 2.8%

Strong demand and home supply shortage are expected to keep resale prices elevated in the coming months  

Resale prices in the central area rose 10.8 percent with 53 units sold. Source: KandlStock/Shutterstock

Flash estimates released by the Housing and Development Board (HDB) in Singapore reveal that resale prices in the public housing market have risen 2.8 percent in the second quarter of 2021, reported Channel News Asia 

The resale price index, which provides information on the general price movements in the resale public housing market, increased from 142.2 to 146.2.  

Christine Sun, OrangeTee & Tie’s senior vice president for research and analytics, said that the increase in resale prices could be attributed to couples that sought after housing in the secondary market after construction of new Build-To-Order (BTO) flats were delayed.  

Buyers looking to downsize from private properties have also turned to the HDB resale market.  

“Due to the robust housing demand and supply shortage, bargains were fading, and buyers have to move quickly if they spot a home that interests them, especially for popular locations,” said Sun. “With many eager buyers willing to match the valuation of properties, prices of resale flats are creeping up in many areas.” 

Strong demand home supply shortage may keep resale prices lifted in the upcoming months.  

“The fast-rising prices may raise the barrier of entry for some first-time buyers. Those who cannot afford an HDB resale flat may either turn to the rental market or delay their wedding plans as they apply for BTO flats,” Sun added. 

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Resale prices in the central area rose 10.8 percent with 53 units sold, while Serangoon saw an increase of 9.6 percent with 112 units sold. Woodlands saw an 8.5 percent rise in prices with 393 units sold. 

Mark Yip, Huttons Asia CEO, said most towns saw lower transaction volumes in the second quarter of this year. The lower volumes were because of viewing restrictions implemented during Phase 2 (Heightened Alert), which began on May 16 and ended on June 13.  

“Generally, there remain keen interest in the market for resale flats because of delays in completion of new homes,” he said. “We expect HDB resale prices to increase by eight percent to 10 percent in 2021, surpassing the gains of five percent in 2020.”