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THE resale-property market hit a seven-year high during the Housing Board's financial year ending March, with nearly 40,000 resale transactions recorded.
It is a 38 per cent jump over the previous financial year, where 28,551 resale transactions were recorded.
According to HDB's latest annual report released yesterday, there were 39,320 resale transactions this financial year (between April last year and March), the highest since FY 2002/2003.
In the past decade, the highest record of resale transactions was between April 1999 and March 2000, when 45,286 deals were registered.
The robust demand for public housing was also reflected in the number of bookings for new flats, which rose 34 per cent from the previous year to 13,200.
A turnaround in the economic conditions during the second half of last year accelerated housing demand, said HDB chief executive Cheong Koon ____.
PropNex chief executive Mohamed Ismail noted that last year was the best performing year for his firm, based on company data from the past four years.
"Close to 20 per cent of the resale transactions came from permanent residents (PRs), up from about 10 per cent a few years ago. Also, we saw more lateral movement (HDB to HDB) among buyers as new flat owners were edged out of the resale market," he told my paper via e-mail.
Mr Nicholas Mak, executive director of the research & consultancy department at SLP International Property Consultants, observed that population growth had pushed up resale-flat prices, causing more buyers to enter the market for fear that prices would escalate.
Singapore's resident population, which comprises citizens and PRs, has grown from 3.64 million in 2008 to 3.73 million last year and 3.77 million as of June.
Upgraders that want to cash in during good times have also contributed to the number of resale transactions, Mr Mak added.
Significantly, he noted, the number of residential projects completed by HDB between April 2008 and March last year were 70 per cent lower than those in the previous corresponding period, driving those who needed homes into the open market.
"A small part of the demand for resale flats was also driven by investors.
Before the change in rules, people who bought a resale HDB flat financed by a private bank loan could sell the flat after one year, until early this year. There were also people who bought flats for rental income," he said.
Since March, the minimum occupation period for the sale of non-subsidised flats in the open market was upped from one year or 21/2 years to three years, regardless of the type of housing loan taken by the buyer.
And, since Aug 30, private-property owners would have to sell their private home within half a year of purchasing a non-subsidised HDB flat.
Strong demand for public housing has prompted HDB to ramp up supply last year. From initially planning to supply 6,000 build-to-order (BTO) units, it raised the figure to 9,000 by year-end.
This year, there are 16,000 BTO units, 3,000 under the Design, Build and Sell Scheme (DBSS, and 4,000 executive- condominium (EC) units.
Next year, HDB intends to offer another 22,000 BTO flats, if demand persists, and churn out another 4,000 units each of DBSS and EC flats.
Mr Mak said: "It will take time for the effects to be felt by the market, as these flats take three, four years to be built. In the meantime, people will still turn to resale flats."
First-time flat owner Rijal Jamil, 35, agreed. "A BTO would no doubt be cheaper but, if I were to minus the $40,000 grant for living near my parents and the $1,000 I get every month for subletting two extra rooms, the price of a resale flat is just slightly higher," said the interior designer who bought his five-room unit in Pasir Ris last year.
Nonetheless, there are still some couples like personal banker Edmund Lee, 31, and auditor Sophia Teo, 28, who are opting to buy a BTO flat due to skyrocketing cash-over-valuation amounts in the areas they covet.
"We'll live with our parents first while waiting for the flat to be ready," said Mr Lee.
HDB's annual report shows that it has an overall deficit of $907 million during its last financial year, almost 60 per cent lower than the previous year.
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It is a 38 per cent jump over the previous financial year, where 28,551 resale transactions were recorded.
According to HDB's latest annual report released yesterday, there were 39,320 resale transactions this financial year (between April last year and March), the highest since FY 2002/2003.
In the past decade, the highest record of resale transactions was between April 1999 and March 2000, when 45,286 deals were registered.
The robust demand for public housing was also reflected in the number of bookings for new flats, which rose 34 per cent from the previous year to 13,200.
A turnaround in the economic conditions during the second half of last year accelerated housing demand, said HDB chief executive Cheong Koon ____.
PropNex chief executive Mohamed Ismail noted that last year was the best performing year for his firm, based on company data from the past four years.
"Close to 20 per cent of the resale transactions came from permanent residents (PRs), up from about 10 per cent a few years ago. Also, we saw more lateral movement (HDB to HDB) among buyers as new flat owners were edged out of the resale market," he told my paper via e-mail.
Mr Nicholas Mak, executive director of the research & consultancy department at SLP International Property Consultants, observed that population growth had pushed up resale-flat prices, causing more buyers to enter the market for fear that prices would escalate.
Singapore's resident population, which comprises citizens and PRs, has grown from 3.64 million in 2008 to 3.73 million last year and 3.77 million as of June.
Upgraders that want to cash in during good times have also contributed to the number of resale transactions, Mr Mak added.
Significantly, he noted, the number of residential projects completed by HDB between April 2008 and March last year were 70 per cent lower than those in the previous corresponding period, driving those who needed homes into the open market.
"A small part of the demand for resale flats was also driven by investors.
Before the change in rules, people who bought a resale HDB flat financed by a private bank loan could sell the flat after one year, until early this year. There were also people who bought flats for rental income," he said.
Since March, the minimum occupation period for the sale of non-subsidised flats in the open market was upped from one year or 21/2 years to three years, regardless of the type of housing loan taken by the buyer.
And, since Aug 30, private-property owners would have to sell their private home within half a year of purchasing a non-subsidised HDB flat.
Strong demand for public housing has prompted HDB to ramp up supply last year. From initially planning to supply 6,000 build-to-order (BTO) units, it raised the figure to 9,000 by year-end.
This year, there are 16,000 BTO units, 3,000 under the Design, Build and Sell Scheme (DBSS, and 4,000 executive- condominium (EC) units.
Next year, HDB intends to offer another 22,000 BTO flats, if demand persists, and churn out another 4,000 units each of DBSS and EC flats.
Mr Mak said: "It will take time for the effects to be felt by the market, as these flats take three, four years to be built. In the meantime, people will still turn to resale flats."
First-time flat owner Rijal Jamil, 35, agreed. "A BTO would no doubt be cheaper but, if I were to minus the $40,000 grant for living near my parents and the $1,000 I get every month for subletting two extra rooms, the price of a resale flat is just slightly higher," said the interior designer who bought his five-room unit in Pasir Ris last year.
Nonetheless, there are still some couples like personal banker Edmund Lee, 31, and auditor Sophia Teo, 28, who are opting to buy a BTO flat due to skyrocketing cash-over-valuation amounts in the areas they covet.
"We'll live with our parents first while waiting for the flat to be ready," said Mr Lee.
HDB's annual report shows that it has an overall deficit of $907 million during its last financial year, almost 60 per cent lower than the previous year.
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