Singapore, 25 Jun 2021 SINGAPORE (EDGEPROP) - The gap between the average price of a private resale property and the average price of new launch projects is at its widest in the last five years. Based on resale transaction statistics from PropNex Realty, the price gap increased to about 47% in 1Q2021 from 35% for the whole of 2020 and 28% in 2019, after climbing from 23% in 2018.
The resurgence in the private resale market also extends to landed homes. URA data for 1Q2021 saw landed housing segment prices increase 6.7% q-o-q, and surpassed the 2.5% increase for non-landed housing. Landed housing also saw a doubling in transaction volume in 1Q2021 compared to a year ago.
In the HDB resale market, construction delays plaguing BTO projects have been a major pull factor to encourage buyers to consider resale flats, says Steven Tan, managing director of OrangeTee & Tie.
The HDB resale market is supported by a few groups of buyers such as homeowners who have been put off by the lengthy completion times for some BTO projects, as well as upgraders looking to move into a larger HDB flat and some condo downgraders looking to cash out for their retirement, says Tan.