Hi Stansu,
1) The last dip in the HDB flat was caused by the lack of numbers in MOP of BTO flats and tight cooling measures implemented in 2013. That was last for 7 years until 2020.
2) In 2012 when Mr. Koh, our National Development Minister, decided to manage the high demand for BTO flats by developing 22,000 flats 2012. The subsequent years 2014 (27,120), 2015 (26,108), 2016 (26,025) and 2017 (35,210) and more...
3) Therefore it is clear from the statistics that this HDB price growth will not be subsided until come to a point where the building of BTO is lower. But from the statistics, it is clear that the target of the building around 17,000 BTO or more will continue for many years.
4) Prices will continue to rise due to the huge number of newly MOP flats continuing to flood the market. It is only that after implementing the cooling measures last November that buyers will be more conscious of their offering rather than just based on the asking price.
5) Especially there are more and more DIY buyers are in the market, they tend to offer to the asking because most home buyers are more emotionally motivated and without the logical advice from profession restraining them from doing so. The reality is this trend is going to continue.
6) Therefore you might have to wait for 10 years or more before you see the price of the HDB flat to stabilize. By then the price would have grown maybe more than 10~15% higher than the current.
7) In 2020, HDB price growth is 5%, 2021 is 12.7%, and 2022 date is expected to be 4% to 8%. By taking an average, you are looking at a growth rate of about 7.2% to 8.6%. If you wait for 10 years it means that you can expect the price shall be around 70% higher than now.
8) The fact is even BTO flats' prices continue to rise due to higher land costs. This is healthy for the HDB flat where this is the only asset that most SC have in their life.
9) Since there is no bubble building at the moment if you look carefully at the price trend. Therefore you will be disappointed if you wish to see it burst.
Hope the above answer your main concerns, but if there are more query, please feel free to contact me at
90110636
, or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer
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