Sales of Newer HDB Flats Hit New Record in 2019

[acet 0]

Increasing numbers of home owners have been selling their Housing Board flats the moment they hit the minimum occupancy mark.

Sales of HDB flats less than 10 years old hit a nine-year high last year, when 4,578 units changed hands — 33.4 per cent up on the 3,432 moved in 2018. The low point was in 2014 when only 1,021 units were sold.

Owning an HDB flat — more often than not, a Build-To-Order (BTO) unit — is a significant rite of passage for many young Singaporeans.

But the growing number of newer flats being sold raises the question of whether this new generation of owners see their flats as a home for life or an investment that they can let go of at any time if the price is right.

Punggol and Sengkang had the highest number of newer flats sold from 2011 to last year. This coincides with the rising number of flats in both areas that have reached their MOP in recent years.

This is perhaps not surprising since there has been a slew of property new launches in District 19. This may also be a pull factor for young Singaporeans who want to upgrade to private properties upon reaching the Minimum Occupation Period of their flats. One such new launch which have benefitted from the upgrader demand would be Sengkang Grand Residences, which launched in November 2019 and sold about one-third of its units on launch weekend.

No doubt the increase in supply of newer flats will have downward pressure on resale flat prices. However, this will mean buyers get to enjoy more choices now, and proves to be a good time to enter the market with more reasonable selling prices from sellers and developers alike.