Should I Sell My HDB or Wait For It To Go Up Further?

Hi there,

 

I decided to do a write up to share on the current HDB market because many owners out there are not sure whether they should be selling their current HDB flat especially if it has reached MOP. I’m sure your neighbours, friends or even family would have asked you about your flat especially if your flat is a  BTO on whether you are planning to sell. 

 

Why? If you have followed the HDB market trend in the news or perhaps received numerous flyers to Sell, Buy or Rent, chances are your BTO flat has risen in value significantly.

 

Let me break down the need for you to assess the current situation if you are planning to upgrade into 5 factors. These factors are significant enough for me to highlight to you so that you understand the need to take action. The key word here is opportunity. In times of pandemic, how do we take advantage to ensure we are able to make our CPF and cash work harder for us in view of retirement.

 

- Delayed BTO Construction

- Resale HDB Sizes Are Bigger

- HDB Prices Now At All Time High

- New Private Home Sales Down More Than 50%

- Private Property Market Favours Property Upgraders Despite Cooling Measures

 

1) Delayed BTO Construction

 

You might wonder why the pandemic has pushed the price of HDB resale flats to record high especially in the last 2 years. And at locations where the BTO flats have reached MOP, you noticed that many of the units are changing hands quite often. 

 

Why? The main reason is many 1st time HDB buyers are affected by the extra-long wait for the BTO flats to be ready due to construction crunch. Imagine you might need to wait 5 years to get the keys to your BTO flat. The BTO flats need time to construct and with the Covid restrictions, not enough manpower to keep building at the desired pace.

 

2) Resale HDB Sizes Are Bigger

 

At the same time, HDB upgraders are looking at bigger units to accommodate the new norm of work from home (WFH) where space is highly sought after. You would probably have guessed that when demand is higher than supply, prices starts to inch upwards. When the situation persists, many upgraders afraid that they might not be able to get the resale unit of choice due to competition, as such cash-over-valuation (COV) component came into the picture. 

 

3) HDB Prices At An All Time High

 

HDB resale market jumped 12.7% in 2021 according to latest figures released and it was a record in terms of annual growth for the last 11 years.

 

Imagine you bought your HDB in 2013 when it was at its peak. For more than 7 years since, based on the property index chart, prices were literally stagnant until the pandemic occurred. More specifically from the 3rd quarter of 2020. I am sure you were stressed knowing for a fact that your HDB is losing value. Worst if you are not aware at all…

 

But today, HDB resale prices has surpassed that from 2013. Does it pose an opportunity for you? Why am I sharing with you this is because as you know the government has introduced cooling measures that will dampen the HDB market whether significantly or not is left to be seen. Just to give you a scenario that is there a possibility for the HDB market to trend downwards like 2013 when the government introduced the few rounds of cooling measures? I guess you know the answer…. 

 

On the contrary, if you have bought your HDB during the low market after 2013, you are set to gain as the current HDB market is at its peak in the last 11 years ago. Your HDB flat would have appreciated significantly. The potential cash profit is the main reason why HDB upgraders are cashing out.

 

4) New Private Home Sales Down More Than 50%

 

The implementation of the cooling measures in December 2021 by the government did have an immediate impact especially on the private new launches sales figures. If you look at the positive side of things, perhaps there is a window of opportunity especially for HDB upgraders. 

 

As far as developers are concerned, sales figures matters and chances are they might hold any plans to increase price in anticipation of re-creating the sales momentum. So the cooling measures might just put buyers in a more favourable position to get a good buy.

 

If you are reading this, don’t you agree with me?

 

5) Private Property Market Favours Property Upgraders Despite Cooling Measures

 

What do I mean by this, as an upgrader you are not subjected to Additional Buyers Stamp Duty (ABSD) when you sell your current HDB to buy an EC or a private property. In fact, many HDB upgraders, with a strong profit from the sale of their HDB flat need not even touch their savings to buy into a private property. Don’t you think it’s a good opportunity for you to provide the best for your family without compromising your financial standing? This is how we are able to generate wealth through a Safe and Systematic way.

 

Now is the time to realise that dream of owning a private property without even touching your savings. And with the safe and systematic way, you will even have reserve funds to rely on as a safety net.

 

I am very excited for HDB upgraders to take action today on the potential of capitalising the current market conditions to your favour.

 

Do not wait anymore, if you are keen to have the next article, please WhatsApp me at 96704504 so that I can forward it to you. Don’t let the opportunity pass. Talk to you soon…