Price Of Hdb Flats In Singapore – Houses For Sale How to buy a HDB flat 2020 Q1 HDB resale prices (and if you buy property between…

The Covid-19 situation has thrown a curveball into virtually every sector of the economy, so we wanted to see how Singapore’s property market is doing. We looked at ALL resale HDB flats sold so far in 2020 and compiled the average median house prices in each neighbourhood:

Price Of Hdb Flats In Singapore

Price Of Hdb Flats In Singapore

HDB reported that although HDB resale flat prices have slowly but surely increased, this time around, it has remained largely unchanged from the last quarter (October – December 2019).

Hdb Resale Prices Are Hitting Their Peak: Analysts

In the chart below, the folks at OrangeTee & Tie Research Consultancy show the average HDB resale price from 2001 to 2010, highlighting the SARS outbreak in 2003 and the H1N1 outbreak from 2009 to 2010:

The property market (and more specifically, the HDB market) is not one of those sectors that will be hit with the direct negative impact of a health crisis.

HDB resale flat prices don’t go through crazy trough and peak cycles. This is because most people buy apartments to live in; and while there is potential for profit, it is mainly for necessary residential use, and not for investment purposes. Which means that even in a recession or a crazy world hit by Covid-19, prices will still remain relatively stable.

Furthermore, unlike private property, only Singapore citizens and permanent residents are allowed to own HDB flats, so prices are subject to the less global forces of supply and demand. For example, border restrictions have certainly cut a large portion of foreign buyers out of Singapore’s private property sector, while having minimal direct impact on the HDB sector.

How Do You Pick An Hdb Flat That Will Hold Its Value?

After the giant BTO launches from 2012-2015, it is these HDB flats that will reach the 5-year Minimum Occupancy Period (MOP) and a large number of them will enter the resale market.

– about 50,000 HDB flats will pass their MOP in 2020 and 2021; in comparison, only around 10,000 flats reached their MOP just 5 years ago in 2015.

Which, for you, means 2 good things: firstly, more options and secondly, the larger supply gives you more bargaining power as a buyer, as sellers face more competition.

Price Of Hdb Flats In Singapore

That said, the virus could also dampen activity in the property market. Some HDB homeowners who originally intended to sell their homes may postpone their plans, for example, if they are not comfortable with waiting for house viewings during this time.

Analysis: Which Town Has The Cheapest Hdb Flats?

But your options are still many, and even if you want to get out of the Covid-19 situation before buying your HDB flat, there’s no harm in looking around now.

Is it the best time to buy an HDB flat? Well, a pandemic is not the best time to

. See a good deal? Or a place you can totally imagine as your home? Don’t wash it off just because of the Covid-19 situation.

Conventional wisdom says that you are fine if you have at least 6 months of income as a cash reserve. But in this time of uncertainty and the Covid-19 situation that is fast-tracking us into an imminent recession, make sure you have contingency plans in place to service your home loan in case of any unwanted surprises.

A Complete List Of 23 Executive Apartments And Where To Find Them + Price And Size

You had plans to buy HDB flat in early 2020, don’t let a good deal pass you by. It’s time to start shopping for your home! When deciding on an HDB flat as your residence, there are a few things you should consider before you decide to buy. You need to be sure of your criteria for choosing the right HDB flat for you or your family.

Do you want to buy the biggest apartment you can easily afford? Or do you just want to live in the apartment you have chosen until the Minimum Occupancy Period (MOP) ends and you can sell it for a profit? Would a 3, 4 or 5 room apartment be more suitable for you or your living conditions and financial situation?

When you consider these factors, what kind of HDB flat can you really afford after doing all the math? The answer depends on the minimum average monthly household income, of course.

Price Of Hdb Flats In Singapore

Here is an example of how you can calculate the possible type of HDB flat you can afford based on your minimum average monthly household income:

Hdb Resale Prices Up 1.2% In Q3, Lower Than Quarter Average In 2022; More Flats Sold

Still need a closer look at how to choose the right HDB flat you can afford?

The average price of different types of HDB flats such as a 2-room Flexi, a 3-room, a 4-room, a 5-room or a 3Gen should be considered when deciding on the right HDB flat for you.

Apart from this, the monthly income of the family also plays an important role in your decision making scenario. This is because the lower your family’s monthly income, the more grants you will be able to receive. Thus, families with lower monthly income, such as young couples or a small family with one adult couple and two children, are likely to benefit from this.

For example, if your total monthly household income reaches $2,500, then you will be able to qualify for $70,000 in EHG. On the other hand, if your monthly household income reaches $6,000, then you will only be able to qualify for $35,000 in EHG.

Types Of Hdb Bto Flats In Singapore

If you put aside the question of whether a bank loan or HDB home loan would be a better choice and focus only on the monthly mortgage, there are still aspects you will need to consider.

One of the aspects involves calculating how much you will borrow at an interest rate of 2.6% per year for 25 years after making the 10% down payment.

For example, young couples who want to keep costs low or plan to upgrade to a larger property in the future, while not planning to have children, may be able to manage a monthly mortgage of $1,000 for a 3-room HDB flat.

Price Of Hdb Flats In Singapore

This is based on the assumption that the monthly mortgage will be about 13% of the monthly household income amounting to $6,000.

Things Worth Noting About Feb 2021 Hdb Resale Transactions, Including The Million Dollar Flats

So then, to gauge what type of HDB flat will suit your financial planning and monthly income, you’ll need a realistic way to estimate how much you can actually afford.

You can use the Mortgage Service Ratio (MSR) which limits the amount you can spend on mortgage repayments to 30% of your gross monthly income.

If the MSR is more than 30% of your gross monthly income, then you may need to reconsider your options.

With this in mind, you are likely to be able to afford a 2-room flexi or 3-room HDB flat without straining your finances. However, if you want a 4-room HDB, a 5-room HDB, or even a 3Gen HDB flat, then your minimum household income will need to be higher to pay your monthly mortgage. Otherwise, it is best not to aim for an HDB flat that does not suit your monthly household income.

Singapore Steps Up Efforts To Make Public Housing Affordable Amidst Skyrocketing Prices — Prop Nest Asia

If you decide to use an HDB housing loan to service the mortgage, you will use your monthly CPF contributions to pay the monthly mortgage. For example, you can use a household income contributor’s CPF to make HDB housing loan payments, which can be risky.

As such, you may find yourself in a situation where your monthly CPF contribution is not enough to cover the cost of your monthly mortgage.

While you may be able to top up your CPF payments in order to afford the HDB flat of your dreams, it is not highly advisable unless you are using passive income (such as from renting out property) rather than cash from your monthly income. the family.

Price Of Hdb Flats In Singapore

That way, if you run into unfortunate circumstances like losing your source of income, your finances won’t suffer as much in the long run.

Hdb Resale Prices Rise 0.9% In Q1, Smallest Increase In Last 10 Quarters

To summarize, when choosing the right type of HDB flat that you can easily afford, you should always consider several factors such as the size of the flat and its average cost, the monthly mortgage you will have to pay, and how much you can spend based on your monthly household income.

When you consider these factors, the type of HDB flat that your finances can really afford once all the calculations are done will be clear to you.

ROSHI one of Singapore’s leading comparison aggregators and an independent loan marketplace. We compare different products including banking, insurance, investment and utility products. We also facilitate loan applications for borrowers and lending partners.

We try to keep all product information accurate and up to date, but the information published on our site should not be construed as financial advice and does not take into account anyone’s personal needs and financial circumstances. While the information on our website provides users with factual product information and general advice, it should not be considered a substitute for professional advice from a licensed financial advisor. Customers should consider whether the products and/or services presented on ROSHI are suitable for their personal needs.

A Look At The Price Changes Of Homes Near Mrt Stations In Q2 And Q3 2021

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