Trends of Property Prices in 2020 for HDB Flats and Various Types of Private Housing

Mr Sitoh Yih Pin asked the Minister for National Development (a) what are the trends of property prices in 2020 for HDB flats and the various types of private housing; (b) what are the reasons for the trends; and (c) whether there are plans to address these trends.

Both public and private housing prices have increased for three consecutive quarters since 2Q2020.

Public housing prices rose by 5.0% in 2020, following the 0.1% increase in 2019. This could be due to the stronger demand for resale HDB flats, as seen by the 4% increase in the resale transaction volume in 2020, as compared with 2019.

Private housing prices rose by 2.2% in 2020, following the 2.7% increase in 2019. The price increase for private housing in 2020 was observed for both landed and non-landed properties. This similarly reflected healthy demand for private housing amongst Singaporeans.

Overall, the demand for housing was likely to have been supported by the current low interest rate environment. However, prospective homebuyers should carefully consider their ability to service their mortgage obligations over many years, and not be attracted by low interest rates in the short term. Given the negative impact on global economies and continuing labour market uncertainties as a result of the COVID-19 pandemic, prospective buyers should remain prudent in their property purchase and financing decisions. The Government will continue to monitor economic and property market conditions very closely, and will adjust its policies as necessary to maintain a stable and sustainable property market.