Prices Of New Flats

[himiten 0]

My friend advised that I should not get a new flat now but wait till a year later because flats now are expensive. She said the prices of flats will decline next year. I'm thinking of getting a place at Punggol and I feel that the prices will only go up with the upcoming plans and development. So do you think the prices will go up or down?

[ben77 0]

My personal opinion is that the valuation of flats will creep up BUT the asking COV of sellers will come down to more realistic levels. On the overall, the prices of flats next year will be higher than now.

[junxian 0]

it happened before. the reason is HDB holding too many unsold flats .. in short overbuilt. so they lowered the price... this was during SARS period.

for now, as you can see, most flat is sell in BTO mode. currently for a new 5rm premium flat is about 250k-300k but in current BTO 5 room range from 300k up.

IMO they already included the possible price rise for the 3 years.

i guess its hard for new hdb price to drop. they can just reduce BTO launches.

[ben77 0]

In the past, the prices did drop during SARs is because HDB built without really looking at the demand. However, the building of new flats will only commence when there is take up ie. 90% or BTO or DBSS flats being offered. In this scenario, there will always be a healthy demand and no oversupply situation. That, in a way is to ensure that prices remain high.

[Sam Lee Poh Huat 0]

Rise rise rise.. affordability is the key word we shld look out for. Recent HDB policies means that they r trying all means to avoid selling their surplus flats at the low range again. A look at their recents BTO launches, we c how much is being define by premium and standard range. BTO's will be launch in a record high this year but how many wld there b by the next... ?

Why wait if u can afford now...

Edited June 15, 2008 by FD1976

[hihihi 0]

I would say prices are unlikely to fall. But more like rising at a slower pace than b4.

1) Policy change. HDB now had a new policy that says new couples if give up their queue (after getting one) will be put in the back of the queue for 1 year. Think many couples seeing a big queue number, knowing sure will get low floors. BUT WHO WANTS LOW FLOORS?? so HDB's new policy is "forcing" pple to take up their flats. In another words, hardselling.

2) the general price of HDB is controlled. They made a mistake b4 of over supplying, but not anymore. See their recent projects u will know.

3) They mentioned they wanted to increase the general resale valuation price, so as to decrease COV, so as to make flats more "affordable". Whatever it is, the hint is strong enough already. Valuation price increase, new flat's price cannot be too far off right? So will peg along.