In 2014, the government rolled out new supply of 22,455 Build-To-Order (BTO) flats.
Public housing had been a contentious issue during the 2011 general election as there was limited supply of new BTO flats, forcing many to turn to the resale market where it is more expensive or couples to delay their marriage.
Million-dollar HDB flats became more common, and as a result, many people expressed their frustration.
Since then, the HDB has been releasing almost 20,000 new flats per year to ease pressure on the resale market.
In 2014, most of the demand from singles and first-timer families had already been met by the HDB.
As a result, fewer flats will be launched by the HDB in 2015 – a total of 16,900 new BTO flats to cater to first-time families, second-timer families and for those applying to live with or near their parents.
Most of the new launches will be taking place in the suburban areas.
According to the HDB, about 3,940 flats will be offered in Bukit Batok, Geylang and Hougang for new sales launches in February 2015.
This is good news for genuine homeowners as they will have more choices and do not have to buy from the resale market.
In addition, the costs will be significantly lower, including whatever grants that they qualify for.
Resale HDB market
The resale HDB market will continue to see a downward trend in the Resale Price Index (RPI) due to the new supply of 16,900 BTO flats coming on-stream this year.
According to the HDB, the RPI fell by 1.7 percent from 195.7 points in the second quarter of 2014 to 192.4 points in the third quarter 2014.
This is expected to fall even further in 2015.
For those looking to sell your HDB flat, it will be a tough market ahead as it will be a buyers’ market.
Therefore, sellers must have a realistic selling price if they want to sell off their flats within a short time frame, particularly those who urgently need cash.
I would urge those with holding power to wait till 2016 before you sell off your HDB flat.
For buyers, particularly those who cannot wait three years to get your new HDB flat, this is the time to start house hunting as sellers will be more realistic in their pricing.
For agents, the resale market will be rather subdued, driven by those in the suburban areas.
Agents must advise their clients to be more realistic in their asking prices when marketing their properties.
Article contributed by Khalil Adis, Director at Khalil Adis Consultancy. (Source: http://bit.ly/1KqZ2nK)
