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Singapore HDB Flats Resale Market Remains Healthy

2012 may just be the lucky year for homeowners who are looking into selling their HDB flats.

According to a news report published on Monday by Yahoo News Singapore, the value of HDB flats bought five years ago can be sold at double the price if the units are put on sale this year.
For example, a Queenstown unit bought by a bachelor five years ago for $330,000 has been sold by real estate agents for approximately SG $750,000, the report stated. Queenstown, along with Bukit Merah and Tao Payoh are one of the mature estates where many flat owners will be successfully completing their MOP this year.

There is a catch, however—only home owners who’ve completed the five-year Minimum Occupancy Period (MOP) can have the option to sell their flats. New flat owners would have to hold on to their keys for a while.

As of press time, the HDB resale price index stayed put at 191.6 during the first quarter of 2012. It was 104.9 in the first quarter of 2007.

The surge in resale market prices was a result of “good timing” and market buoyancy. It may take a long time to happen again, said economic experts.

“Back then, HDB prices were in the doldrums because of SARS (severe acute respiratory syndrome) and the Asian financial crisis,” said PropNex CEO Mohamed Ishmail in the Yahoo News Singapore interview.

In similar news, private resale home values in the island state have also soared last month from 0.4 in March to 0.8 in April based on the NUS Singapore Residential Price Index (SRPI).

The rosy forecasts in the secondary market can be attributed to the great opening shot in the sales of new homes during Q1 2012, according to HSR Property Group Special Advisor Donald Han.
“The secondary market volume is picking up, especially after the run-up in new home sales in the first quarter. Primary market prices have gone up and some buyers may think that they can get better value in the secondary market,” said Han in his interview with Yahoo News Singapore.