HDB’s beefed up upgrading programmes will likely have little effect on resale prices given the sluggish residential market, according to media reports quoting experts.
“When prices are overall heading south, resale flat values are unlikely to see significant premium over those which have yet to be upgraded,” said R’ST Research Director Ong Kah Seng.
SLP International’s Research Head Nicholas Mak concurs, saying, “At best, it might slow down price declines.”
These programmes can make flats more attractive to buyers, but only if the seller has already paid for it, noted ERA Realty agent Noel Lu. Notably, homeowners are billed only after the enhancement has been completed.
Moreover, some buyers might be put off by the dust and noise if the upgrading works are still ongoing, added Dennis Wee Realty agent Mindy Soh.
While the study by NUS Professor Lum Sau Kim revealed upgraded flats command higher prices, upgrading schemes do not really make an impact if the prices are so high said Suntec Real Estate Consultants’ Colin Tan.
These programmes mainly benefit residents who stay put, he added.
Last week, HDB introduced the Selective Lift Replacement Programme (SLRP) which will replace 750 old elevators with modern ones. It also extended the Neighbourhood Renewal Programme (NRP) to units built till 1995, which will affect 100,000 more households, while the Home Improvement Programme (HIP) will benefit 50,000 flats each year, up from 35,000.
Image source: HDB
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
