Price of Private Non-landed Houses vs HDB

-

 Let's take a look at the average price of Non-Landed Private Properties (eg. condo)


This includes all the non-landed houses in Singapore, in all regions. At this time of writing Q4 2020 prices is not available yet. For Year 2020, it is the average price index of Q1-Q3. As you can see, after 2017, the price level of properties do not increase as much.

How does it compare to HDB?


The above shows the price index of Non landed private properties as compared to resale price index of HDB. As you can see, from 2015 onwards, the price of non-landed private properties continue to increase while the price levels of HDB remain relatively flat. 

Which do you think is a better investment? For most people, to get a profit you have to buy low and sell high. 

If you buy a HDB or non landed property at around the time of the first red circle at around 2009, you will likely be able to make a profit if you sell the property in 2013. 

Similarly if you buy a non landed property in 2017 and sell at 2019, it is likely you can make a profit too. However the prices for HDB remain relatively flat from 2017-2019.

Of course, these are average prices of resale HDB of all types so I didn't take into account of HDB BTO etc.  This is just a overivew gauge of the industry.

Let me know your views in the comments below.

Sources: 
https://data.gov.sg/dataset/price-indices-of-non-landed-properties-by-locality 
https://data.gov.sg/dataset/hdb-resale-price-index

Comments

Post a Comment

Popular posts from this blog

Useful Telegram channels

-
Telegram is gaining popularity and is a good way of getting news right away.  Here are some useful telegram channels about the property news/scene that might help you in your purchase of your next house. 1.  SingaporeHDB - HDB's official telegram channel to push HDB related news and announcement to you real time.  2. Ku Swee Yong Telegram channel - Telegram by well known Property advisor who shares his views and outlook of the property scene. Good to hear his views and what to look out for before you make the next purchase.  3. Propnex Property News Broadcast - This is the telegram channel by Propnex that pushes daily property news to you. 4. The Business Times - This is the official Business Times Telegram channel that will share business times news to you. However you have to be a subscriber to read some of the premium news. 
Read more

Should I buy a new launch or resale condo?

-
Image
 Recently, The Business Times published this chart on 16 March 2020 comparing the affordability of different types of housing over the years.  Source: https://www.businesstimes.com.sg/real-estate/in-a-covid-year-new-condos-price-income-ratio-widens  Affordability is calculated based on the property median prices for each of the property types, divided by median annual household income. On the left is the implied number of years one household have to save to buy a 1000 sq property. From this chart you can see that the prices of new sales/launches of non-landed private have been going up steadily, it is the steepest of all.  On the other hand the prices of resale non-private have been going up my a small margin of 0.1 from 2019 to 2020. For prices of resale HDB, it has also went up from 2019-2020.  What does this article tell us? It gives a overview on the disparity of prices between new launch non-landed private as well as resale non-landed private. This is important if you are looking
Read more

Investing in HDB?

-
Image
Is it good to invest in a HDB? Recently there are many million HDBs sold.. -> https://www.straitstimes.com/singapore/housing/13-hdb-resale-flats-sold-for-at-least-1m-in-jan-prices-rise-for-7th-straight-month Is it a good investment? Taken from data.gov.sg, we see that the number of flats sold is decreasing since 2017, after reaching its peak. The number of flats for rent is about the same.  This is the resale price of HDB flats, as we can see, the price increased at of 2020 Q4. Despite the covid situation and the weak SG stock market, the price of HDB flats continue to increase.  Number of rental houses do not seem to show any signs of decrease.  According to these graphs, there seems to be good chance that you can sell away your HDB for a profit in the future, given that there is large number of lease years left in the HDB as there is a tighter restrictions for buyers to buy HDB with leases less than 50 years.  Even if you now is not the right time to sell the flat at a profit, you
Read more