Prices of HDB resale units may not increase as sharply as during 2006 to 2012.
National Development Minister Lawrence Wong revealed that most public housing are not eligible for the Selective En Bloc Redevelopment Scheme (SERS), whereby the government purchases homes at prevailing market rate, while the residents are offered discounted new units in another development, reported the Singapore Business Review.
HDB flats not qualified for SERS are recovered by the Housing Board once the building’s tenure has lapsed, according to the HDB Market Pulse report from OrangeTee.
“Besides the remaining lease, there are other factors which affect the resale price of an HDB, such as current economic conditions, local supply and demand dynamics, availability of nearby amenities, upgrading works etc.”
“For example, the prices of old three-room flats in Bukit Merah have seen an uptrend in prices from 2001 to 2013 despite their declining lease,” said the property agency.
While the effect of Wong’s statement is expected to be marginal as most old HDB flats have remaining leasehold tenure of more than 50 years, OrangeTee advised people to exercise prudence when purchasing one as HDB resale units may no longer post a sharp increase in prices similar to what was witnessed in 2006 to 2012.
This article was edited by Denise Djong.
