While The Second Quarter Housing Board Flat Resale Transaction Period Plummeted, There’s Hope For The Future
During the second quarter of this year, the housing board flat resale transactions plummeted due to the circuit breaker measures. According to data from the HDB, transactions dropped by 41.9% from 5,893 during the 1st quarter to 3,426 over the 2nd quarter. In comparison to the data from last year, the percentage this year is 45.4% lower
According to the Housing Board, units dropped during the second quarter due to Say at Home Orders. Singapore’s shut down led to severe measures that lasted from April to June.
The last quarter’s sales figures were at an all-time low for 13 years in 2007, and according to Christine Sun, head of OrangeTee and Tie, the slump could have been caused by the strict distancing requirements that were in place during the shut down. Also, distancing measures prevented people from viewing housing physically.
Even though using computerized tours, enhanced images, and readily available houses should have been a positive move, many buyers had a lot of difficulty getting around the pyschological barrier to offer deals because they were not able to view the units in person. The majority of buyers would prefer to look over a property in person to physically view the layout and the conditions of the units before making any decisions.
The costs on resale flats increased approximately by 0.3% from the earlier quarter. After staying level over the 1st quarter, the financial values increased slightly. Sun said she was surprised because prices of resale flats fluctuated a lot more drastically during past crises. Examples include the Asian financial crisis when the HDB resale price index plummeted over 9 solid quarters between 1996 through 1999, the September 11, 2001, attacks caused prices to fall for eight consecutive quarters between 2000 – 2002, and the 2008 global financial crisis caused prices to fall in 2009.
To date, the four dynamic stimulus packages provided by the Government have been productive in avoiding a housing crisis or pricing collapse in housing. Lately, it seems that prices for flats are holding fast with no signs of a housing selling panic across the island.
The accepted number of applicants for renting out HDB units dropped 9.1% from accepted applications over the first quarter. In comparison to last year’s numbers, the amount of approved applicants is down by 14.6%. The total number of units rented by the end of the 2nd quarter, showed a 0.1% rise since the earlier quarter which came in at 57,652 rented units.
According to HDB, they will offer more than seven-thousand custom units in Geylang, Tengah, Pasir Ris, Ang Mo Kio, Woodlands, Bishan, Choa Chu Kang, and Tampines, starting next month. Available in November, there will be 5,700 units available in Tampines, Toa Payoh, Bishan, Sembawang Toa Payoh, and Tengah. Out of these units, North and Tengah, Choa Chu Kang, and Tampines will be available much sooner.
According to Nicholas Mak, head of ERA Realty in charge of research and consultancy, he believes there will be more changes in the employment numbers and the overall economy will lead to lower resale volumes.
That said, the numbers could find a balance when large numbers of new units entering into the resale market as their 5-year minimum occupation period comes to a close. Mak added that some of the newer units could go for a higher price tag in the resale market over the older units in the area. The transacted costs will contribute to the growth in the resale price index.
Due to the pandemic crisis and other occurrences that have taken place, it could be welcomed change to see growth in the resale market. The financial world will be keeping a close eye on the market and will continue to announce future changes as they occur.
Refer to the link here for more information,
https://www.straitstimes.com/singapore/housing/hdb-flat-resale-volume-plunges-419-in-q2
