We had read in the news that the HDB market had been increasing over the past year and the prices had now surpassed the peak on the second quarter of 2013.
Channel News Asia reported on 01 Oct 2021 that the resale prices had hit an all time high after 2.7% rise in Q3 this year. News article here
With prices hitting the same as 2013, this will means that for owners who bought in 2011 to 2013 when the HDB prices were at the peak can now either sold at break even or have a min profit.
With the above chart, for owners who bought in 2011 Q3 onwards, they can only start to break even from 2020 Q4 onwards until lately where the index surpass 2013’s peak.
What has this data got to tell us? For home owners who bought between 2011 to 2013 and your unit’s lease is depleting, this is a good time to look into your options. And now is the window of opportunity that you have to either break even, gain a small profit and explore a newer or bigger unit.
Many owners / buyers are asking us if the prices will drop or will it keep increasing. With the recent news on delay in the construction of BTO and thus the delay in the TOP, the increase in the community cases. It looks like the prices will be there to hold.
However, having said that, with the government opening up of the economy and once the work force starts to go back to work, the demand may begin to slow down. If you are still sitting on the fence if its time to explore selling, this is the time to act. And if you are looking to buy something and time is on your side, you can adopt a watch and see approach. But do take note of the balance lease of the unit, by buying a unit at a high price with a short lease, the potential upside will then be minimum.