, Singapore

Up to 28,000 HDB flats could be resold in Singapore in 2022

And prices could increase by as much as 9%.

In the second half of 2022, OrangeTee analysts say interest rate movement and housing supply may play a more significant role in determining the trajectory of flat prices and housing demand in Singapore. 

Higher interest rates will translate to higher borrowing costs, which will moderate demand and price growth. However, since there has been a long run-up in resale prices, a steep price correction may not happen so soon. 

Here’s more from OrangeTee:

Currently, the interest rate hike has not affected the public housing market substantially as the loan quantum of most HDB flats is not high, and most homeowners are not over leveraged. However, the interest rate hike may be more keenly felt when rates move above 3.5 per cent.

Should such a situation occur, more first-time borrowers may switch to an HDB loan pegged to 2.6 per cent. Other borrowers may pay down their loans to reduce their monthly installments. 

As HDB continues to launch more BTO flats in the second half of this year, the increased housing supply will continue to draw demand away from the resale market, which may help to regulate the pace of price growth and tame market exuberance. 

We anticipate that 25,000 to 28,000 resale flats may be transacted this year. Resale prices may grow by 7 to 9 per cent for the entire year.

 

 

 

Follow the link for more news on

Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!