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HDB price trends

HDB Resale Price Index DOUBLED from 2007 to 2013, dropped slightly to 2015 then stabilized. However, due to high supply of flats completed in 2014 that enter on resale market in 2019, prices are likely to drop more in the coming years.

Actually prices are rising in some towns while dropping in other towns. I sourced data from HDB Resale Statistics and compiled an Excel file showing HDB price trends since 2007, and based on it I created the below charts.

The gaps in lines in Excel chart are because HDB do not provide median price if less than 20 flats were transacted per quarter. Especially in case of Executive flats, it do not display prices on Bishan and Queenstown (towns famous for $1 million HDB flats) because they do not have at least 20 transacted flats except in Q2-Q3 2008.

HDB resale flat prices 1990-2015

As you can see in the chart, Singapore HDB flat prices DOUBLED in 2008-2013 due to insufficient supply of new flats.

Would you like prices dropping next 5 years to the early 2000s value? Think about owners who worked hard to pay current flats which will lose half of value! Would you like prices growing so you and everyone else can make profit selling? Think about your kids, how hard they will need to work to buy their first home!

HDB resale flat prices by flat type HDB resale flat prices per sqm by flat type
HDB resale flat prices per square meter by lease year HDB resale flat prices per square meter by storey

During 1990s, the location was not so important. Bishan and Bukit Timah had most expensive resale flats, but a thing less known by the young generation, is that Choa Chu Kang and Pasir Ris were among the most expensive estates. Mature towns like Queenstown, Toa Payoh and Ang Mo Kio were cheaper.

Larger flats types had higher price per square meter or feet than small flats, in 1990-1992 average resale price of Executive flats being double than average resale price of 4-room flats, at an area 40% larger.

HDB stopped deciding the prices of new apartments based on construction costs, instead they decided based on market prices. Prices of resale flats and new flats entered in a vicious circle, rising 50% in just 6 months of 1993 and tripled to 1996. The price gap between small and large flat types has decreased.

The 1997 Asian Crisis came when 80.000 flats were under construction, demand for new flats felt sharply. leaving HDB with about 40,000 unsold completed flats in the year 2000, mostly large flat types. 2003 SARS outbreak affected economy too, so 5 years were necessary to clear the stock of unsold flats. Queue selling system (Registration for Flat) was suspended in 2002, Build-To-Order was introduced to prevent oversupply, and Walk-In-Selection was used temporarily to clear the stock of unsold flats.

Old (mature) estates were not attractive, so HDB launched various upgrading programmes and Selective En-bloc Redevelopment Scheme to make them attractive again. Resale flat prices in old estates (where most 3-room are located) started rising in 2002, while in the new estates they continued to fall until 2006, Executive flats having biggest fall. Price per square foot between small and large flat types equalized in 2005.

As the stock of unsold flats vanished, Walk-In Selection ended in 2007 and was replaced by Sale of Balance Flats that is only twice per year thus the battle is 6 people per each flat. BTO became main mode of flat supply. People who cannot wait 3-4 years construction time for BTO and fail at SBF, need to go in resale market. Resale prices started rising.

Prices grew faster in pre-1980 estates due to upgrading programmes fever of SERS, bringing Marine Parade, Queenstown, and Toa Payoh in line with Bishan and Bukit Timah. Pasir Ris had lowest price growth.

Singapore economy recovered in late 2000s but HDB failed to anticipate, it ramped up the BTO supply too late and too slow, they offered 5500 BTO flats in 2007, 7800 in 2008, 9000 in 2009 (global recession), 12000? 16000 in 2010, 22000 25000 in 2011, 25000 27000 in 2012, plus DBSS flats and Executive Condos. (strikethrough numbers are initial numbers announced at beginning of year).

Rising supply of BTO became visible in 2012, a small reduction in resale prices growing rate.
HDB lowered minimum application rate for BTO to be built from 70% to 50% in 2011, but since mid-2000s to 2013 no BTO had application rate under 100% (except elderly Studio BTO flats).

Analysts predicted that the prices in Singapore will start dropping in 2012 (example), as they predicted in 2011, 2010 too. In my forecast, resale flat prices will NOT fall even in 2012, but will continue to grow for as many years as HDB refuse to build ahead of demand, forcing us to wait 4 years via BTO!

The cooling measures introduced since 2011 such as Minimum Occupation Period lengthen to 5 years for resale flats (does anyone know when 5-year MOP was introduced for new flats?) just made people angry. Stupid MOP cause less flats to enter resale market in the coming years, and the number of people not eligible for buying directly from HDB (for example PR and singles) is growing.

Most of BTOs launched in the 3 years 2009, 2010, 2011 been completed in only 2 years 2013-2014… 25000 flats completed in 2014 alone + 5 years MOP = possible market crash in 2019. I am not saying that prices will not start to fall earlier, but 2019 may have the biggest price fall (if other variables would not exist).

Note: The above text was written by my personal research at end of 2011. Later I found a similar research on h88.com.sg: Colin Tan: HDB resale flat prices will stay up, dating from Feb 2012, that confirm my hypothesis  They say that prices will drop no sooner than 2017! Oh dear…

Prices dropping since 2013

One of the cooling measures, 3 year waiting period for permanent residents to buy resale flats, introduced in August 2013, created fear that the housing market may crash. Resale flat prices dropped in 3rd quarter 2013, for the first time in 5 years. Such minor drop in prices may cause panic, many owners rush to sell their flats before prices fall more, leading to a chain reaction in price drop, OR if the panic may be just temporarily and prices will rise back next year. However, there are no signs to recover. Every quarter of 2014 added 1-2% drop in prices. No significant drop but still enough to make analysts ANGRY that HDB cooling measures were too powerful and requested to be lifted.

Note that HDB can also invent anti-cooling measures in case prices drop with more than 10% in one year, and these anti-cooling measures can fail like how most of the cooling measures failed. HDB wants to stabilize prices, a too sudden drop can be disastrous for entire Singapore economy.

Stupidity: instead of providing an adequate supply of flats, they kept supply low during 2000s despite of population increase, low number of flats entered in resale market while the demand was rising, then during 2010s HDB artificially slowed down demand for resale flats with cooling measures, and when prices started to drop, instead of keeping supply high and lift the cooling measures, they announced to decrease supply of new BTO flats 24300 units in 2014 to 16900 units in 2015. Idiot decision! BTO launches do not affect resale prices directly so we expect to see prices dropping and further decrease of BTO supply in 2016, thus the 2008-2013 price bubble risk to happen again during 2020s!

Personalty I hope that HDB will let the price index to drop slowly to 150 (2009 level), THEN lift the cooling measures, but keep the supply of at least 25000 BTO flats per year.

New BTO flat prices won’t fall according resale price index, they were traditionally priced 20% cheaper than nearby resale flat prices, but since 2011 they were “de-linked” and became 30-40% cheaper (even if we exclude grants for first timers) as the HDB anticipated market fall. Even if the prices fall 10% for 3 consecutive years, BTO flat owners will still have profit from selling their flats. This does not apply for DBSS flats which were overpriced at their launch in 2011-2012. Raised income ceiling from $10k to $12k in 2015 may allow HDB to push up BTO prices.

See also:
HDB new flat prices database (1984-2018)
BTO prices database (2001-2018)
Resale flat prices database (1990-2018)

https://kendata12345.wordpress.com/category/4-hdb-bto-flats-price-and-cost-analysis/ – Another website did a detailed analysis of cost of building a BTO flat compared with selling price. He copied my Excel file of BTO prices without my approval.


If you could decide HDB flat prices to fall or rise, what you would do?

10-20% price rise per year to ensure that every flat owner can make profit when will sell the flat. Forget our children and other young couples
max 5% price rise per year
Maintain prices as constant is possible
max 5% prices fall per year
10-20% price fall per year to quickly make the flats affordable for our children. Forget the current owners which will lose money, but public housing is not meant for investment and profit
Please Specify:

Poll Maker

Poll started February 2016. See also results of previous poll (379 votes between April 2014 and February 2015).

What you should know

– Upgrading programmes and upcoming MRT lines also drive up the nationwide resale price index.
– The small size of today flats may encourage people to go in resale market for flats built before 1998 (NOT SURE if this push up the resale prices, record of psf is now hold by resale flats built in 2000s).
– Prices fall faster in young towns than mature towns, Punggol suffered biggest price fall in late 2013, as results of over-speculation during last years, this after it was the cheapest town in mid-2000s.
– In mature towns prices fall faster in the old 10-storey blocks of Queenstown and Toa Payoh that are getting shadowed by the new 40-storey blocks.

Affordability of HDB flats

Yes they are still affordable!
Proof: every launch, the higher priced BTOs (better locations) gets most applicants.
HDB Website shows application rate. See how 3-room remained unsold and how big is the battle for 5-room despite of higher prices. See the TRUTH about shrinking HDB flat sizes!


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    • Winnie on March 20, 2015 at 12:53 am
    • Reply

    Thanks writer for your analysis and the chart. From your analysis, i feel that you have high quality brain cells. Jiayou. You will do very well. =)

    • Eileen on April 14, 2015 at 12:43 am
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    What will the HDB resale price heading from present till 2016 ?

    • hopeful l gal on May 2, 2015 at 4:13 am
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    I do have a challenge here and is stuck-

    my 3 room flat in AMK was bulit in 1979, under joint name with Mum which i bought in 2011, with 35k COV. ( back then valuation was only 245K and COV at this level was decent) Thanks to all the restricted cooling measures, I slogged hard to fully paid up for the house since my mum is retired with no income, the only way for me to buy another place ( private or HDB ) is to remove my name in the flat and transfer the flat to her name. That comes with a penalty, upon transferring, i will need to wait for another 5 yrs before i can sell. ( that will be in 2019) ! my AMK flat will be more than 40 years..

    My initial thought is that i can then rent out my existing 3 rm flat in AMK when i purchase another flat. ( as passive income)

    Now comes the challenge ! With the leading indicator of HDB dropping, I am thinking if i should sell in this current environment ? selling the flat meant i will be looking at a depressed price ( merely break even) and i need to start looking out without a roof on my head.

    Really having a headache, what is your suggestion,,,, or anyone can give some sound advice.:)

    1. I am not the best person to advice in this field…
      What penalty? If you can afford condos why do you care about little money loss due of falling prices? Anyway, median price in AMK for 3-room is $322.000, same level like in 2011, how did you bought so cheap? You still can sell in profit, especially as price falling slowed down.
      An alternative idea is to sell that 3-room in 2016, buy another HBD for yourself then your mom can apply for a Studio flat.

    • bb on May 5, 2015 at 12:48 pm
    • Reply

    You are doing a great service! Your efforts are really appreciated.

    • trin on May 24, 2015 at 4:46 am
    • Reply

    Hey, really love your opinions on the site. Am doing a research on the removal of Cash Over Valuation in Singapore. Any inputs or personal opinion you could share?

    1. What do you want… to sell flats strictly at the valuated price? NO WAY, as it is the negotiation between seller and buyer so there is not possible to remove COV, if you need money fast is normal to ask lower or negative COV to get a buyer faster, otherwise put COV if you don’t agree with valuation price and you’re able to wait until someone really likes your unit and is able to pay high COV

    • Dany on June 8, 2015 at 11:32 pm
    • Reply

    Good Day.I’m planning to buy a resale 4 room HDB flat at Pungol or Sengkang. Is i a good time to buy or wait for some more time. As per predictions the price drop will continue. Please advice. I think the median price for 4 room flat now is 350K.

    Your answers are greatly appreciated.


    1. Wait 3 weeks and we will see 2nd quarter price index. I am curious too if the drop will continue. I guess that will continue, but not more than 1% per quarter.

      • Jay on June 25, 2015 at 11:49 am
      • Reply

      4 room flat 350K? where got so cheap???

    • KHM on July 8, 2015 at 1:43 am
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    I expect to collect my 4-rm BTO mid-2016 and must then sell my existing EA (first HDB flat bought in 1994). With falling prices in HDB resale market, should I sell my EA in 2016 or try to delay till late 2017.

    1. As nationwide average, prices does not seems to fall anymore, this year they are stabilized.
      Check the Excel file linked in at top of article (https://www.teoalida.com/singapore/HDB-Median-Resale-Prices-by-Teoalida.xls) to see if they are fall or growing in your particular town.

        • KHM on July 8, 2015 at 6:34 am
        • Reply

        Thanks but there is no data on Executive Apartments in CCK area.

        1. If you refer at the fact that I made the charts for 3-room to 5-room only, you can see click the “ALL” sheet in Excel file and see prices for Executive too, as provided by HDB website, which do not provide data for Choa Chu Kang and many other towns due of low volume of transactions. This is why I can’t make a chart for 5 towns only where they provide prices.
          You have to look at price trend for 5-room. I predict that its price may fall another 20-30k to end of 2015 then stabilize in 2016. Let’s see the next update on 24 June. Can’t tell what will happen in 2017, nobody can predict accurately more than 1 year ahead.

    • Chong Ooi on July 27, 2015 at 3:02 am
    • Reply

    I booked a BTO at Punggol and ready for move in at Feb 2015.
    I haven’t collect the key as i don’t have enough cash.
    I have to sell away my hdb maisonette bought at May 1996, 146 sq Meter.
    the response is poor, there’s a buyer offer 700k which is far away from my targeted price (780k)
    i lost 20k if i return new flat to HDB
    my current location 53 Pipit road.
    please give me some advise

    1. I am not agent, but I heard from other visitors of website that their agents brought 20+ buyers in their home until were able to convince one to buy, having to lower the price twice. By checking http://services2.hdb.gov.sg/webapp/BB33RTIS/BB33PReslTrans.jsp I can see 2 maisonettes sold at Pipit Road for 640 and 700k. What are you dreaming to sell at 780k? Lower the price or nobody will ever purchase that!!

    • Esther on August 1, 2015 at 6:29 am
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    like some advice, i recently bought a condo and had to pay ABSD of 7%. i am however, torn between selling my HDB EA to get back the ABSD or to pay the ABSD and rent out the EA. Having bought the EA at a relatively high price, if i sell now, likely to make a slight loss after considering the purchase price and interest paid todate.

    • Eve on September 3, 2015 at 2:52 am
    • Reply

    Hi… u think hdb hse price will go up… I applied for amk 4 room flat and will need to pay at least 450k… I m worried that the price will drop… n cost lesser in future…

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