Chief Editor July 28 2022

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HDB resale transactions suffer third consecutive quarter of decline although price increases by 2.8%

HDB resale transactions in the second quarter of 2022 drop 1.7 per cent to 6,819 thus registering the third consecutive quarter of decline.

Year on year, resale transactions were 3.5 per cent lower according to latest statistics from HDB.

Although the HDB resale price was 2.8 per cent higher than the previous quarter, volume is critical to support prices in the long run. 

When the demand for resale HDB flats wanes, prices will turn flat and upside will be very limited. 

Andy Chia Jin Tai, associate division director at ERA Realty Network, said the persistent delay in HDB BTO completion will lure buyers to HDB resale market. 

“How many couples can afford to wait 5 years to start their family?” he asked.

Most marriage couples do not want to stay with their parents and it is not economical to rent an apartment for so many years, said Mr Chia. 

The total number of approved HDB rental applications in the second quarter of 2022 was 15.2 per cent lower than 2021 in the same period.

Statistics further revealed that 56,014 HDB flats were rented out at the end of Q2, only a 0.6 per cent drop over the previous quarter of 56,340 units. 

HDB rental price will be supported given there is limited supply of flats for rent since a number of homeowners have sold their flats.

Potential HDB buyers must apply for HLE to assess their eligibility for HDB loan in view of the the rising bank interest rates hovering near 3%. 

The fixed interest rate 2.6% for HDB loan is a strong appeal nowadays but one of the requirements is that the gross monthly household income must not exceed $14,000. 

Next month, HDB will offer about 4,900 new BTO flats across Ang Mo Kio, Bukit Merah, Choa Chu Kang, Jurong East, Tampines and Woodlands.