Some home buyers may turn to the resale market next year due to the lower supply of new flats.
Analysts expect the HDB resale market to benefit from the Housing Board’s plan to taper the Build-To-Order (BTO) flat supply from 17,891 units in 2016 to around 17,000 units next year, reported Singapore Business Review.
Eugene Lim, Key Executive Officer at ERA Realty, said potential home buyers may feel that their chances could become lower due to the reduced flat supply. As such, some buyers may turn to the resale market, “where prices have been stable this year and the waiting time is much shorter”.
Based on the responses seen at recent BTO sales launches, particularly those in mature estates, the HDB may also start construction work before actually launching the flats for sale, said Lim.
“Alternatively, they may also be considering using the shorter waiting time to make new towns like Tengah more attractive for those willing to be the first movers,” he noted.
Lim added that pricing and waiting time are major considerations that affect the buying decisions of many new flat buyers.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
