INTRODUCTION Singapore’s economy shrank 5.4% last year as the Covid19 pandemic disrupted various industries around the world. The North Gaia EC recession has been one of the worst since Singapore became independent. However, the public housing resale market passed 2020 relatively unaffected by the recession. Last year, the HDB resale price index rose 5.0% year-on-year, and the number of resale transactions increased 4% year-on-year to 24,748 units. This was not the first time the HDB resale price index had escaped a recession. HDB prices have not always fallen during the recession. The Singapore economy has experienced four recessions in the last three decades. This is defined as a quarterly decline in real gross domestic product (GDP) for at least two consecutive quarters. In the last four recessions, the HDB resale price index has fallen in two of the four recessions caused by the Asian financial crisis of 1998 and the recession of 2001. The global financial crisis of 2008 and the other two recessions caused by the Covid 19 pandemic of 2020 have led to higher prices for public housing. One of the North Gaia Floor Plan reasons the HDB housing market is resilient is that public housing is a fundamental need and is Singapore’s cheapest form of housing. As a result, it is unlikely that demand for public housing will plummet during a recession. On the contrary, some private homeowners can even be downgraded to social homes in the event of financial difficulties during a recession, contributing to the demand for HDB apartments. Another reason is the restrictions and restrictions on ownership and transactions of HDB apartments. If you can own multiple units of a particular asset that are easy to trade with minimal limits and transaction costs, the price of that asset can fluctuate significantly between the market boom and bankruptcy. An example of such an asset is a listed security. On the other hand, ownership and sale of HDB apartments is more strictly regulated. Only North Gaia Price Singaporeans and permanent residents could own an HDB apartment. Each resident household could only have one HDB apartment, which would be its primary residence. This limits ownership of the HDB apartment. In addition, all homeowners must live in a home for at least five years before selling it. This regulation restricts transactions in HDB apartments. There are other rules and regulations to ensure that HDB homes are treated as homeowners rather than commercial value, which helps maintain price stability. The third reason is that the Singaporean government can have a relatively large impact on the public housing market compared to the private housing market. The state monopolizes the HDB primary market because it controls the supply and price of new HDB apartments. Governments can also impact the resale market through government regulations, guidelines, and subsidies. However, the degree of government impact on HDB resale prices and demand is affected by the rate at which policy effects are filtered through the housing market. The HDB resale market remained strong during the pandemic. The North Gaia Showflat HDB resale price index exceeded last year’s private home price index. In 2020, private home prices rose 2.2% year-on-year, which was only half the HDB resale price. The HDB’s resale price index has risen steadily since the third quarter of 2019 and has only been temporarily suspended in the first quarter of 2020, which is the same as the previous quarter. In the fourth quarter of 2020, HDB resale apartment price increases accelerated to 3.1% compared to the previous quarter (qoq). This was the highest quarterly price increase since the third quarter of 2011, when the HDB resale price index rose 3.8% quarterly. A total of 24,748 HDB resale apartments relocated in 2020, 4.4% higher than 2019’s annual transaction volume. Despite the ongoing pandemic, HDB resale volume in 2020 is 13.5% above the annual average for the last five years. From 2015 to 2019. Among the various HDB cities in Singapore, the pandemic showed the largest increase in HDB resale apartments sold in 2020, with resale volume up 50.9% year-on-year to 1,750 units. This was followed by Pasir Ris and Hougang, with resale transactions up 45.1% and 29.3% year-on-year, respectively. Impact of North Gaia Yishun Young Resale Homes From 2011 to 2014, the Singaporean government dramatically increased the supply of new HDB Build to Order (BTO) homes in response to strong housing demand. These apartments were built within 3-4 years. As a result, the number of HDB homes that could reach the end of the five-year minimum occupancy (MOP) and be sold in the resale market surged from 2019 and 2020 to 2023. In 2019, HDB had 29,678 resale homes. The end of her five-year MOP has been reached. Last year, an additional 24,513 new HDB apartments were approved for resale. That’s almost double the average of 12,600 newly qualified apartments over the five years from 2014 to 2018. In this report, a “young house” is defined as an HDB resale apartment 5-10 years ago. The remaining rental period for young apartments is usually at least 89 years. The increase in the number of such young apartments sold in the resale market is the driving force behind the soaring HDB resale prices in 2020, as these apartments may get higher prices than older apartments. It could be one. These young apartments are new and have a longer lease period than the old ones. In addition, some of these new apartments have a contemporary design integrated with shops, parking lots and leisure facilities that provide amenities to residents. As a result, younger apartments offer higher resale prices. In 2020, a total of 6,493 such apartments were sold.
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