HDB resale housing prices have appreciated significantly faster than private residential prices due to the COVID-19 pandemic.
According to the latest government data, as of October 2021, the HDB housing resale price index has increased by 4.1 percent in 2020Q1 from 2020Q4. Whereas the private residential price index has only jumped 1.5 percent in 2020Q1 when compared with 2019Q4.
Meanwhile, landed private housing prices increased to 4.8 percent in 2021Q3 when compared with the rates in 2021Q2. Subsequently, the non-landed private housing price index has also increased by 1.1 percent in the respective period.
A report from Channel News Asia notes that the reason for the hike in public housing prices is attributed to delays in the construction of private houses due to the COVID-19 pandemic. The growing uncertainty on the completion of the houses has led to couples favoring completed homes in the secondary market.
However, prices have been fluctuating in the last two decades, there was a decrease in HDB resale prices in 2009Q1 while it increased gradually till 2013Q2 and once again dipped in 2015Q1. The prices have once again increased at a steady rate since then and reached a peak in 2021Q1.
Similarly, the private residential price index has also varied in years. The prices decreased to the lowest in 2004Q1 and picked up gradually till 2008Q2 and once again went down in 2009Q2. But the prices have been in an upward trend in the last quarter.
Although the above figures depict that the prices have differed in the last two decades, public housing prices have appreciated sharply in 2021 when compared to the public housing prices.