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But uncertainty could also push more private home owners to right size, particularly as they approach retirement. This would add to the demand for larger HDB flats, particularly those in more desirable locations.<\/p>\n
This was what we observed with the Russia-Ukraine war in 2022, which saw a very small but growing number of HDB resale flats fetching at least S$1 million (US$787,340) and strong price growth for larger flats in non-mature towns such as Sembawang and Woodlands.<\/p>\n
That same year also saw the introduction of a 15-month wait-out period for former and current owners of private homes seeking to buy public housing flats. The restriction was aimed at cooling the HDB resale market for higher-priced flats, which was heating up partly due to demand from private property downgraders flush with capital.<\/p>\n
This underscored how periods of uncertainty can have implications for housing demand, especially as HDB flats are often seen as a more affordable option.<\/p>\n
Despite heightened uncertainty and expectations of higher inflation, the HDB resale market is set to continue moving towards a more balanced state.<\/p>\n
In previous housing cycles, sharper and more persistent declines were usually accompanied by clearer signs of economic weakness, financial stress, or a more abrupt withdrawal of demand. That is not what current assessments are suggesting. The outlook is hence for prices to remain broadly stable, with mild fluctuations rather than a sustained downtrend.<\/p>\n<\/div>\n