Would Resale HDB prices ever drop?
Would like to tap on the wisdom and experience of valuebuddies - would Resale HDB prices ever drop?
I am thinking:
- HDB resale prices have gapped up strongly since 2020.
- Interest rates are rising now.
- If one buys a resale HDB now, would he be entering at the peak?
hi Choon,
You can refer to the historical RPI found at HDB.
https://www.hdb.gov.sg/residential/selli...statistics
- There is a chart from 1994 to 2022. Of course the numbers are for averages and mileage varies across room type and town.
- There are 3 noticeable declines - 1997, 2000 and 2013. 1997 and 2000 correspond to AFC97 and dotcom crash and so I reckon it would be safe to assume these were the causes. As for 2013, It was probably Khaw Boon Wan's work after the PAP historic loss of a GRC to the WP.
So based on the historical trend, the answer to your question "would Resale HDB prices ever drop" would be YES.
(20-09-2022, 08:32 PM)weijian Wrote: [ -> ]So based on the historical trend, the answer to your question "would Resale HDB prices ever drop" would be YES.
A fall in price implies a fall in demand. Does the fall in demand indicate some of these demand is "artificial" instead of a real need of housing?
Therefore, in today's context, are high prices a function of real demand ("person really needs a house to stay") or demand + speculation (investment property)?
It has always been Supply Vs Demand.....
MND Lee say by 2025, majority of covid-delayed BTOs will come on-line,
so resale prices will normalized. = so supply increase, yes, prices decrease,
Demand? = depends on our population growth and intake as well, 10 millions people?
so monitor both numbers lah...