There is no direct correlation between commercial and HDB prices. HDB is usually the last to feel the impact from the economy. When the economy is good, private properties (Commercial and residential) are affected first by business owners who are more cash rich to buy and invest. Similarly when the market turns gloomy, this is the first sector to be affected too.
Only when the impact is felt fully by the private market then it trickles downwards to HDB. As in when the market is good, everything becomes more expensive and demand filters down to HDB for the more budget conscious. When the market goes down, HDB is still somewhat insulated because there is genuine demand from first timers who needs a home.
Certainly when HDB prices drop, if it is not artifically due to Governmental intervention, it meant that the economy is not doing well, and consumers have lesser spending power. If this is the real scenario then of course businesses are already not doing well much earlier on and commercial property prices should have dropped or be stagnant for awhile.
Alexandra Khoo
property.alex.khoo@gmail.com
DTZ
Read More
