In the second quarter of 2021, HDB’s resale price index outperformed all other North Gaia Yishun real estate price indexes, including office, retail and industrial space. Had the HDB resale price index been at an Olympic event, it would have won a gold medal. HDB apartment prices rose 3.0% in the second quarter of 2021 (second quarter of 2021) compared to the previous quarter (qoq) and 11.0% compared to the previous year (yoy). The HDB resale price index is just 2 ° below the peak of the price cycle in the second quarter of 2013. The price increase was partly due to the significant delay in the construction of HDB BuildToOrder (BTO) apartments. The longer waiting times for North Gaia Showflat new apartments have significantly increased the demand for resale apartments, allowing apartment sellers to achieve higher prices for their apartments. This situation has also led to homebuyers’ FOMO (Fear of Losing Out) or “kiasu” syndrome. As a result, Cash Over Valuation (COV) is back in the HDB resale transaction. In May 2021, the government introduced additional restrictions to curb the spread of Covid 19. From May 16th to June 13th, 2021, the size of the conference group was limited to 2 people and only 2 individual visitors per day were allowed. As a result, property tours become more difficult and some buyers may prefer to postpone viewing until the restrictions are lifted. In addition, the number of resale apartments available for sale was limited. The cheap HDB resale apartment was bought immediately. Realtors had a hard time finding a new list of resale homes. Therefore, the North Gaia Price transaction volume of HDB resale in the second quarter of 2021 decreased by 6.8% from the previous quarter to 7,063 units. Still, it was more than double the 3,426 resale apartments that were liquidated a year ago in the second quarter of 2020. This is because unprecedented circuit breakers implemented to delay the pandemic fell in most of the second quarter of 2020. During the circuit breaker, most real estate transactions were temporarily suspended. This means that HDB trading volume was the lowest in the last six years in the second quarter of 2020. Home buyers prefer larger apartments that can be easily converted into home offices when needed, as working from home becomes the standard form of work. Demand for large apartments such as 4-room, 5-room and executive apartments increased between 15.5% and 22.8% in the second quarter of 2021 compared to pre-pandemic levels in the fourth quarter of 2019. In contrast, demand for small apartments was 6% to 20% lower than in the fourth quarter of 2019. Contrary to the trading volume of HDB, the HDB permit increased to 10,979 apartments in the second quarter of 2021 despite strict restrictions. HDB rental transactions in the second quarter of 2021 increased by 2.8% compared to the previous quarter and 4.2% compared to the previous year. The Covid19 pandemic delayed the construction of new private homes and build-to-order spaces, resulting in more people temporarily renting apartments or private apartments while waiting for the new home to be completed. In 2021 and 2022, about 26,000 apartments and 35,300 HDB apartments will reach the end of the five-year MOP. In addition, these North Gaia Floor Plan apartments are new and may have higher resale prices. Unless current market conditions change, HDBresale flat prices are expected to rise 8% to 12% year-on-year in 2021, due to Phase 2 social distance and the Hungry Ghost Festival in August 2021. It may rise further in the third quarter. From July to August 22, 2021, Singapore will return to Phase 2 (Elevated Alert). This will limit the exhibition activities of HDB resale apartments for sale. This has changed ownership of approximately 27,000 to 31,000 HDB resale apartments this year. This is the highest resale volume since 2010. The second latest private home real estate price index released three weeks ago, with the exception of the real estate price index. The price index for non-rental residential real estate rose 1.1% in the second quarter of 2021 compared to the previous quarter. This was driven by a 1.9% increase in prices, driven by the market segment of suburban condominiums outside the central region. Last quarter. real estate developers launched 2,356 private housing units (excluding EC) in the second quarter of 2021. That’s significantly less than the 3,716 units on the market in the first quarter of this year. This reduced primary market sales by 15% to 2,966 units in the second quarter. The takeover rate, defined as the ratio of units sold in the primary market to the number of units brought into the market, remained strong at 126%. This shows strong demand in Singapore’s primary private residential real estate market. On the other hand, secondary market sales volume do not appear to be affected by the tightening of regulations in the second quarter of 2021 and have increased in the last four quarters since the second quarter of 2020. 5,483 units from qoq. This is the largest transaction volume in the secondary market for private residential real estate since the replacement of 5,550 units in the third quarter of 2010. The largest increase in resale volume in the second quarter of 2021 was CCR. After declining in mid-2020, the growth rate of the Home Leasing Index has accelerated in the last six months. In the second quarter of 2021, it grew 2.9% compared to the previous quarter, faster than the 2.2% growth compared to the previous quarter. Interestingly, as you can see from the table below, the rental index for private residential real estate rose faster than the price index for all different market segments in the second quarter of 2021. The North Gaia EC Covid19 pandemic partially contributed to the rapid growth of the rental index. The pandemic disrupted the construction industry, delaying the completion of public and private housing projects. As a result, some households rent out residential properties while waiting for the acquired property to be completed. Strongest rent growth
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