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Thread: HDB resale transactions plunge 41.9% in Q2 amid COVID-19 circuit breaker; prices inch

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    Default HDB resale transactions plunge 41.9% in Q2 amid COVID-19 circuit breaker; prices inch

    Singapore

    HDB resale transactions plunge 41.9% in Q2 amid COVID-19 circuit breaker; prices inch up

    24 Jul 2020 10:08AM
    (Updated: 24 Jul 2020 10:10AM)

    https://www.channelnewsasia.com/news...20-q2-12959334

    SINGAPORE: The number of Housing and Development Board (HDB) flats sold in the resale market in the second quarter plunged 41.9 per cent amid the COVID-19 "circuit breaker" period.

    Official figures released on Friday (Jul 24) showed a total of 3,426 flats were sold from April to June, falling from the 5,893 sold in the first quarter.

    On a year-on-year basis, the number of transactions was down 45.4 per cent, according to HDB data.

    Prices inched up 0.3 per cent from Q1 to Q2, with the resale price index – which provides information on the general price movements in the resale public housing market – increasing to 131.9.


    Median resale prices by town and flat type for re-sales in Q2 2020. (Table: HDB)

    Despite the unprecedented global health crisis and macroeconomic shocks posed by COVID-19, there has been no steep correction in prices unlike in past crises, said head of research and consultancy at OrangeTee & Tie Ms Christine Sun.

    "As of now, the four rounds of aggressive stimulus packages unleashed by the Singapore government seem effective in preventing a housing market meltdown or property price collapse," she added.

    HOUSE VIEWINGS CURTAILED

    Singapore implemented a circuit breaker on Apr 7 to tackle COVID-19. It began a gradual reopening with Phase 1 starting from Jun 2.

    Physical viewings of flats resumed only when Phase 2 kicked in on Jun 19.

    Ms Sun said buyers not being allowed to view flats in person probably had an impact on sales.

    "Even with the use of virtual home tours, augmented reality and e-open houses, some buyers face difficulty overcoming the psychological barrier of sealing the deal without first inspecting the unit in person."

    But she sounded an optimistic note on the overall direction of the resale market.

    "Given that the HDB resale market had not been heavily battered by the pandemic unlike the hospitality and retail sectors, the road to recovery may not be a lengthy one. We may expect demand to return to some normalcy in the coming months as house viewings have resumed fully."

    HDB figures also showed a 9.1 per cent fall in number of approved applications to rent out HDB flats, from 11,591 in the first quarter to 10,539 in the second quarter. Compared to the same period last year, the number of flats rented out declined by 14.6 per cent.

    As of Jun 30, there were 57,693 flats rented out, an increase of 0.1 per cent from the previous quarter.

    NEW LAUNCHES

    HDB will launch about 7,800 Build-to-Order (BTO) flats in Ang Mo Kio, Bishan, Choa Chu Kang, Geylang, Pasir Ris, Tampines, Tengah and Woodlands in August.

    It had earlier said that the BTO exercise originally scheduled for May would be combined with the August exercise.

    In November, it will launch about 5,700 BTO flats in Bishan, Sembawang, Tampines, Tengah and Toa Payoh.

    Across the two launches, the flats in Choa Chu Kang, Tampines North and Tengah will have a shorter waiting time, said HDB.

    Source: CNA/jt(ac)

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    Default Re: HDB resale transactions plunge 41.9% in Q2 amid COVID-19 circuit breaker; prices

    HDB flat resale volume plunges by 41.9% in Q2 amid circuit breaker

    HDB rental transactions also fell, with the number of approved applications dropping by 9.1 per cent

    Sat, Jul 25, 2020

    https://www.businesstimes.com.sg/rea...ircuit-breaker

    HOUSING and Development Board (HDB) flat resale transactions took a plunge in the second quarter of 2020 in light of the circuit breaker measures.

    The number of resale transactions fell by 41.9 per cent, from 5,893 flats sold in the first quarter of 2020 to 3,426 flats in the second quarter, HDB data on Friday showed.

    Compared to the same period in 2019, resale transactions in the second quarter of 2020 were 45.4 per cent lower.

    Singapore's circuit breaker period, where strict safe distancing measures were put in place, lasted from April 7 until June 1.

    Noting that last quarter's resale volume was the lowest quarter sales on record since 2007, OrangeTee & Tie's head of research and consultancy Christine Sun said the decline could be attributed to the tighter safe distancing measures imposed during the circuit breaker which prevented physical house viewings from being carried out.

    "Even with the use of virtual home tours, augmented reality and e-open houses, some buyers face difficulty overcoming the psychological barrier of sealing the deal without first inspecting the unit in person," she said.

    "Most buyers would still prefer to assess the condition of the flat and have a better visualisation of the unit layout before making a purchase."

    The prices of the resale flats inched up slightly with the resale price index at 131.9, up 0.3 per cent from the previous quarter. The prices rose marginally after staying flat in the first quarter of the year.

    Ms Sun called this surprising since the prices of resale flats have fluctuated more dramatically in past crises.

    She listed the Asian financial crisis when the HDB resale price index plunged over nine successive quarters between 1996 and 1999, the 9/11 attacks when prices fell for eight consecutive quarters between 2000 and 2002, as well as the 2008 global financial crisis when prices slipped in 2009 as examples.

    "As of now, the four rounds of aggressive stimulus packages unleashed by the Singapore government seem effective in preventing a housing market meltdown or property price collapse. Currently, prices of flats seemed to be holding firm with no apparent panic selling islandwide," she said.

    Over in the HDB rental market, transactions also took a hit. The number of approved applications to rent out flats fell by 9.1 per cent, from 11,591 applications in the first quarter of 2020 to 10,539 in the second quarter.

    Compared to the same period in 2019, the number of approved applications in the second quarter of 2020 was 14.6 per cent lower.

    In total, as at the end of the second quarter of 2020, there were 57,693 flats rented out, a 0.1 per cent increase over the previous quarter when there were 57,652 units rented out.

    HDB said that it will offer about 7,800 Build-To-Order flats in Ang Mo Kio, Bishan, Choa Chu Kang, Geylang, Pasir Ris, Tampines, Tengah and Woodlands in August.

    Another 5,700 flats in Bishan, Sembawang, Tampines, Tengah and Toa Payoh will be available in November.

    Of these, the flats in Choa Chu Kang, Tampines North and Tengah will have a shorter waiting time.

    Looking ahead, Ms Sun said the demand for resale flats may return to some normalcy in the coming months as house viewings have resumed fully and market confidence is returning.

    "At this juncture, a significant price correction is rather remote unless the global health crisis spirals out of control and our unemployment number creeps up significantly," she said.

    "Nonetheless, a supply overhang with many HDB flats reaching their five-year minimum occupation period may continue to exert downward pressure on prices. The overall resale price could range between -2 and 1 per cent this year. THE STRAITS TIMES

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