Resale HDB transactions in 2018 hit new high in six years - EdgeProp

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Resale HDB numbers hit 23,099 transactions for the whole of 2018 – a new high since 2012, highlights Orange Tee & Tie. This is an increase of 4.6% compared to 2017, when 22,077 resale flats changed hands. “The increasing sales volume is a silver lining in the HDB resales market, where demand continued to be resilient in many areas,” the firm says.

Meanwhile, HDB resale transactions were 5,637 in 4Q2018, a 20.2% q-o-q drop. Prices of HDB resale flats declined by 0.2% in that period, and recorded an overall decline of 0.9% for the whole of 2018, which shows “signs of resiliency as compared to 2017”, says Propnex. The fall in prices has been “less pronounced” when compared to 2017.

OrangeTee & Tie attributes this to more transactions being done as newer HDB flats reach their Minimum Occupation Period (MOP) in non-mature estates that are able to fetch “good” prices. This year, 26,000 HDB flats are expected to reach their MOP. “We may see more resale activities in towns like Punggol, Sengkang, Yishun, Bukit Merah, Pasir Ris and Tampines as many flats will be put up in the resale market once they reach their five-year MOP,” it adds.

Propnex executive chairman and CEO Ismail Gafoor estimates 23,000 to 24,000 homes to be sold in 2019. The overall HDB resale price index will experience a 1% growth this year, he says.

Meanwhile, ERA attributes the trend of HDB resale flats fetching over $1 million to four reasons.

First, HDB flats are the most affordable type of housing in Singapore – “those [who] are priced out of the private property market or are ineligible for new Build-to-Order (BTO) flats will buy resale,” it says.

Second, resale flats are the “only way” for buyers to pick a flat in their location of choice.

Third, there is no income ceiling for those buying resale flats if the buyer does not take grants or a HDB loan.

Fourth, there could be additional demand from the owners of collective sales who could have chosen resale HDB flats as compared to a similar-sized private unit.

However, these high-priced transactions remain the exception rather than the norm. The “majority of resale HDB flats that have been transacted are supported by valuation [which] points to a very stable public housing market”, says ERA.

By

Charlene Chin

/ EdgeProp

|

January 26, 2019 6:16 PM SGT

Source: EdgeProp

Property Cooling Measures’ Impact Bigger Than Expected - PropertyGuru

DBS bank’s property loans segment has dropped by 40 to 50 percent since the latest cooling measures were announced.

The government’s surprise property cooling measures in July 2018 had “more bite” than anticipated, with DBS bank’s property loans segment dropping by 40 to 50 percent – way below the bank’s forecast of a 20 to 25 percent reduction, said DBS CEO Piyush Gupta.

At the start of the year, the bank expected to add $4 billion to its mortgage loan book, reported Today Online.

More: Outlook 2019: Private Housing Supply In Singapore To Surge In 2019

The figure was forecasted to drop to $2.5 billion to $3 billion following the implementation of the property curbs. However, the amount of property loans posted by the bank stood at under $2.5 billion only.

As part of the July cooling measures, the government raised the Additional Buyer’s Stamp Duty (ABSD) for individuals by five percentage points, while entities faced a 10 percentage point hike. The loan-to-value limits were also tightened by the government.

Despite this, Gupta still expects Singapore’s economy to grow by 2.5 to 3.0 percent this year.

He cited the interest rate hikes by the US Federal Reserve, trade tensions between the United States and China, Brexit, and China’s economic slowdown as the macroeconomic headwinds expected to hit the global markets this year.

And while Gupta foresees a slowdown in the global economy this year, as evidenced by the drop in the Purchasing Managers’ Index (PMI) in the US, Europe and China, he believes that this “does not portend any significant recession”.

The PMI measures the manufacturing activity within an economy.

“I don’t see any recession coming at all. I think the slowdown is part of the normal cyclical slowdown,” he said.

To know more about the property hotspots for 2019, check out PropertyGuru AreaInsider

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

Romesh Navaratnarajah • January 11, 2019

Source: PropertyGuru

Almost 50% Of Public Rental Tenants Previously Owned HDB Flats - PropertyGuru

Many public rental tenants struggle to afford a flat due to medical issues, divorce or loss of employment.

Over the past two years, an average of around 7,300 households have applied for rental flats each year, revealed the Ministry of National Development in Parliament on Monday (14 Jan).

“HDB’s public rental flats cater to households with no viable housing options or family support,” it said.

Find HDB flats for rent or read our HDB guides and BTO guides

Responding to a query from MP Zainal Sapari, the ministry said the demographic and socio-economic profile of the households was varied, with 90 percent having a household income of $1,500 or less, 40 percent were widowed or divorced, while a similar proportion were married.

Reasons cited by applicants for needing rental housing were varied, such as the inability to afford a flat due to medical issues, divorce or loss of employment.

It noted that “close to half of the households in public rental have owned an HDB flat before”.

Meanwhile, the most common reasons why public rental applications are denied include not meeting the citizenship requirement, having sufficient budget to acquire a flat or having family support for alternative accommodation.

But in the event family support is not forthcoming, the applicant will be referred by HDB to a Family Service Centre for mediation or counselling assistance.

“If mediation is unsuccessful, and the applicants cannot afford to buy a flat, HDB will be prepared to offer an interim rental or a public rental flat.”

Can you afford an HDB flat? Check your affordability now.

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

Romesh Navaratnarajah • January 15, 2019


Source: PropertyGuru

Over 5,000 Households Disposed Their Private Homes After Buying HDB Resale Flats - PropertyGuru

Buyers of resale flats are not allowed to retain ownership of private homes in Singapore or abroad.

With HDB flats meant for owner-occupation, buyers of resale flats are not allowed to retain ownership of private residential properties in Singapore or abroad, explained the Ministry of National Development in a written reply to Parliament on Monday (14 Jan).

In fact, slightly over 5,000 Singaporean households have disposed of their private residential properties after buying HDB resale flats since the policy was rolled out in 2010.

Over the past three years, around 1,200 households have appealed to retain ownership of their private homes.

HDB has acceded to around 300 appeals after taking into account specific facts of the case, such as the share of the owner in the private home and the reasons why the private home could not be recovered for his or her own use.

Home buyers looking for Singapore Properties may like to visit our Listings, ProjectReviews and Guides.

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

Romesh Navaratnarajah • January 15, 2019

Source: PropertyGuru