Analyst say limited supply is driving demand for HDB resales up to 13-year high

SINGAPORE: Analysts predict that prices of HDB resale flats could increase by 8% to 10% as demand reaches a 13-year high.

According to recent HDB data, July saw the resale of 3,047 flats, marking the first time in nearly 14 years that sales surpassed 3,000 units. The last time this threshold was crossed was in September 2010, with 3,002 units sold. The highest recorded monthly sales since August 2010, when 3,298 transactions occurred, underscoring the current surge in market activity.

Mark Yip, CEO of Huttons Asia, told Singapore Business Review (SBR) that the increased sales could be attributed to buyers’ fear of missing out, fueled by a scarcity of listings. The continued rise in resale prices has instilled a sense of urgency among buyers, prompting quicker purchase decisions.

“The pick-up in sales in July could be partly due to a slight pent-up demand from June when market activity slowed during the school holidays as many families traveled overseas,” Wong Siew Ying, head of research and content at PropNex, told SBR, suggesting that the July spike in transactions might be a rebound effect from a quieter June.

Christine Sun, chief researcher and strategist at OrangeTee, highlighted another contributing factor. She noted to SBR that many buyers aimed to close their purchases before the “ghost month” in August, a period traditionally seen as inauspicious for property transactions.

Ms Sun added that she observed a significant number of flats being sold for around $1 million each, indicating that many HDB upgraders possess the financial capability to move into private housing. This trend is expected to boost demand for private homes, especially resale condominiums.

TISG/

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