Last year, the average price for the public housing market rose 4.8 percent, up from the 0.1 percent increase in 2019.
Despite the pandemic that restricted activity in a number of industries, home prices in the fourth quarter of 2020 saw the highest quarterly increase in this decade. The real estate market is going nowhere and we have some helpful tips and insights for anyone looking to buy or sell a property.
Know your market
In 2020, the real estate market started with a slight decline in the first quarter, but rose 2.2 percent in 2020. Prices fell in the central urban areas at the beginning of the year. However, there was a spike in the outdoor areas, where house prices rose 5.1 percent between February and July.
In the fourth quarter of 2020, residential property prices rose 2.1 percent. Although house prices rose in the fourth quarter of 2020, central prices fell 11.8 percent from Q3 to Q4 2020.
It is imperative that you research the housing markets of the specific neighborhoods in which you plan to buy or sell. We urge buyers and sellers to keep an eye out for price developments for their specific neighborhoods.
A start would be to look at the current prices and compare them with the prices of the past year. Other factors discussed in the following sections, such as interest rates and government initiatives, also play a role in “Knowing Your Market”. There are several sources you can use like PropertyGuru, 99.co, and SRX Property to find the right properties for you.
Stay up to date on BTO sales and start making announcements
Aside from just looking to resell properties, this can also help keep an eye on the Housing & Development Board (HDB) new buy-to-order sales and project launches. There were already a few sales and project starts in 2021, and more will follow.
HDB has announced that HDB will offer around 3,800 BTO apartments in Bukit Merah, Geylang, Tengah and Woodlands in May 2021. In addition, HDB will offer around 4,900 BTO apartments in Hougang, Jurong East, Kallang Whampoa, Queenstown and Tampines in August 2021.
For those of you interested in newer homes, BTO apartments may be the more attractive option. The best source for announcements on these topics is HDB. You should keep an eye on the best home loan interest rates for BTO apartments to ensure that you are getting a mortgage that suits your needs and financial requirements.
Keep an eye on the Federal Reserve
Interest rates are a major factor in fluctuating real estate prices. Interest rates and house prices are inversely correlated. Basically, as interest rates go up, property prices tend to go down as demand from home buyers declines. These affect both current homeowners and potential homeowners as many home loan and home loan refinancing rates follow market interest rates.
Past data tells us that the SIBOR and the SOR tend to keep a close eye on interest rates in the United States. For this reason, we recommend keeping an eye out for trends and announcements regarding US interest rates for current and future homeowners.
