With resale HDB prices rebounding back to its peak within a year, it has allowed some 7,169 HDB upgraders to buy new and resale private homes in the first three quarters this year, a jump of over 21 percent compared with the same period last year.
Straits Times reported that this puts the number of new and resale private homes sold to HDB upgraders on track to surpass 2020 levels. The robust HDB resale prices is boosted by a recovering economy, the prolonged work from home default, low interest rates and construction delays for BTOs and condominiums. As at 31 October 2021, 192 resale flats were sold for at least $1 million this year, a record high. In comparison, 82 such HDB flats changed hands for the whole of last year.
If you are a HDB owner, should you sell now?
The unique and favourable circumstances for existing HDB flat owners present opportunities for those who are looking to upgrade to private homes or those who are waiting to collect their keys to a new home.
As a flat owner, you have restrictions in terms of who you can sell to in the future depending on the prevailing ethnic and citizenship composition in your block and neighbourhood. Furthermore lower floor or less superior facing units face challenges when it comes to selling the units.
The issue of lease decay which was prominently highlighted in the past few years still weigh on many HDB owners as many seek to protect the equity they have built up through their HDB property.
It is not a simple decision to make as there are implications that come along with it. Do get in touch for a complimentary consultation so that you can better understand your options and whether you should sell or stay put in your HDB.