Wednesday, October 15, 2008

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HDB Market Outlook: HDB Flats Sale Remains Strong Amid US Subprime Crisis

HDB Flats oversubscribed by more than 10 times


HDB flats demand remains strong amid the US subprime crisis. In two recent launches from the Housing Development Board, there are over 10 times more applicants than HDB flats for sale.

On 10 Oct 2008, last Friday, the half-yearly sale of three-room premium, four-room and bigger flats saw 7036 applications for 683 units, yet the offer ran until Thursday.

Smaller HDB Flats 16 times over-subscription as bigger HDB flats become unaffordable


From Oct 2 to Oct 8 2008, HDB put on sale 150 smaller flats including studio apartments and 2 to 3 room flats in Bukit Merah, Geylang, Jurong East, Sengkang, Ang Mo Kio and Marine Parade. There were 2426 applications for them; 582 for the studio apartments and 1844 for 2-3 room flats. This makes the supply of these smaller HDB flats about 16 times over-subscribed. Studio apartment prices range from $62,900 to $116,400. A 2-room flata goes for $74000 to $106300; and a 3-room flat $134500 to $275200.

The huge over-subscription seen for smaller HDB flats should not come as a surprise despite the gloomy economic outlook triggered by the US subprime crisis. In anticipation of the country's worsening recession which the Singapore government has warned may lead to retrenchment, many home-buyers are getting increasingly cautious about making their financial commitment. Besides, HDB prices have surged significantly over the last 2 years making bigger HDB flats increasingly less affordable and lower-income households may have no choice but to start with smaller flats.


May also want to read:
History of Singapore Property 1960 to 2008
HDB Resale flats Price Index 1990-2008: Graph & Chart
Property Price Index Graph Plotter & Online Property Valuation
HDB Resales: West Sees Highest Price Increase

2 comments:

Anonymous said...

I find it strange that before the property boom, the number of applicants for HDB flats is so much lesser than now. Could it be the high influx of PRs?

Since there are so many people waiting for flats even though the economy is gloomy, is it highly unlikely that the HDB flats price will drop? With such high HDB flat price, how do common people like us buy?

Smart Buyer said...

Dear Anonymous,
Providing affordable housing is the role of our government. Try conveying your problem to your MP.

Best wishes

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