Since the National Day Rally Speech, when PM Lee announced a slew of new housing grants and giving Singaporeans and new Singaporean new families a chance to own their own home – with the Special Housing Grant, and changes to the income ceiling – allowing higher income individuals the chance to grab a BTO flat.
Just a quick recap if you like:
At the recent National Day Rally Speech by PM Lee, he said we should make it easier for families to own HDB Flats. They should be affordable and accessible to all. To make it so, changes to the Income Ceiling to allow more families.
They raised the Household Income Ceiling (to be able to apply for housing grants and to apply for BTO), from the original $10,000 to $12,000. This is especially targeted at 2nd Timers, that over time, their income has increased, but they prefer to go for a bigger BTO flat.
“If you ask for my personal opinion … I generally prefer to give every Singaporean couple a chance of living in (a) HDB (flat),” Mr Khaw said during a live radio talk show on MediaCorp’s Chinese-language station Capital 95.8FM.
“You may come from, say, an upper-income group. You do not need an HDB flat. But I feel that it’s good for … almost all Singaporeans to have a chance of living in HDB for five years, and interact with the community.”
He added: “It’s part and parcel of the Singaporean way of life. It’s just like males go for National Service … If we can give them this opportunity of staying in HDB towns, I think there are more positives than negatives.”
What happens in the BTO or primary HDB market always affects the resale market. When there is a large supply of new HDB flats, it encourages buyers to look to new flats. Who doesn’t like to buy brand new? Given a choice: Brand New, a full 99 year lease, additional housing grant, special housing grant, is going to swing buyers away from units for sale in the secondary market.
Quoted from: TodayOnline
These changes are long overdue. Changes to the market situation, household income, inflation made buying new HDB. It has been discussed by the MND Minister at that time – Khaw Boon Wan in June, so it wasn’t a surprise when PM Lee announced it. But we’re glad its now in place.
But this Article is about the Q3 2015 OUTLOOK!
As reported by HDB:
Represented graphically – especially to help visualise how the market is moving
Looking at this chart – we are somewhere near 2011 prices. Some may say – Hey its not really that cheap, that’s true, prices has not come down very much. 3 room HDB flats are still about $300K, 4 room flats are also about $400K. I really doubt it will go much lower. Brand new HDB is only about 20-30% discount from the resale market. It is also one of the key reasons driving people to choose resale HDB instead.
Overall, HDB resale volume is trending upwards. The Flash Estimates for Q3 2015 shows that Resale Prices continue to slide, but at a reduced rate. Which means the market is stabilising. So if you are looking to buy/upgrade you better move on fast. There will be a large number of individuals going for upgrade to the new 3G flats, and old folks 2nd timers, taking advantage of the Additional Housing Grant (AHG) to live near their kids, or vice versa. We anticipate things to be quite exciting till end of the year for the HDB market.
People know that, when property agents tell clients things – they think we are trying to push them to buy or to sell. More often than not, but some of us don’t speak without concrete evidence. In most recoveries – Volume will come before price upward trend. But I think prices of smaller units will remain quite stable and may see some upside if they are near to town centers and MRT, larger units in new towns, have softened a lot, and should not be falling too much either.
Really if you are looking at upgrading, and you aren’t so concerned about location, the towns such as Punggol, Sengkang Bt Panjang are really the places you should consider. Their prices have softened quite a fair bit, and you can really find excellent bargains over there.
Want to know where are the best buys? The best buys are truly what ticks everything on your wish list – not just price. So don’t always look at price as a barometer on what you should be buying. Buy something that you will be happy living in. Money can buy many things, but happiness is not one of them, making your family happy and comfortable is the most important thing for everyone.
Writer of this article is sharing her personal opinion about the HDB property market. Her opinion is hers and not that of the agency which she is registered with. She has been in the real estate industry since 1999, and has a diverse interest in real estate.