Resale HDB

Older HDB Flats Don’t Depreciate As Quickly As You Think. Here’s What The Numbers Show

Join our Telegram group for instant notifications
Join Now

Ryan J

A seasoned content strategist with over 17 years in the real estate and financial journalism sectors, Ryan has built a reputation for transforming complex industry jargon into accessible knowledge. With a track record of writing and editing for leading financial platforms and publications, Ryan’s expertise has been recognised across various media outlets. His role as a former content editor for 99.co and a co-host for CNA 938’s Open House programme underscores his commitment to providing valuable insights into the property market.

Subscribe
Notify of
guest
7 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
chong
chong
2 years ago

The analysis in article is not complete. There is no free lunch. Slower depreciation in early years, will mean much faster depreciation in later years (after 50 yrs), in general.

Stacked Homes
Admin
2 years ago
Reply to  chong

Hi Chong, yes that’s right. That’s true, but that point is not so certain yet, as we’re still seeing really old HDBs holding their ground. At some point, the prices would drastically fall, so rather than a smooth depreciation over 99 years, it’s more of a long holding out and a collapse towards the end.

analyst
analyst
2 years ago

1. not much point if specific locations are not analysed e.g. TPY / AMK / BDK. I doubt we can take 5-10 years SK / PG and compare to these areas

2. Should analyse other periods besides 2021 as well. Don’t think the record COV will continue to stick for old flats. How long did the previous COV mania in 2011 last?

3. there is also some survivorship bias for old flats. Only the better old flats get sold, and the rest are unable be sold. No point selling your old flat now if u can’t get a good deal, because you will be worst off finding a new one.

Stacked Homes
Admin
2 years ago
Reply to  analyst

Hey! Yes these are the weaknesses of the study I’m afraid. There are things that we can’t account for due to a lack of data, as you’ve mentioned, comparing it to places like SK and PG. We’re primarily interested in the relationship on a whole, as we often get questions about whether or not to buy an older flat like one that is 20/25 years old as opposed to a 5-year old flat. There’re a lot of people who would encourage you to “sell quickly” and upgrade before it gets worse, but we just wanted to showcase that this is not so black and white

Lin
Lin
2 years ago

I feel that Covid period is not a true picture of these old flats’ worth due to exceptional demand for resale flats for various reasons. When worker shortages start to ease and BTOs are available again with normal lead times, it would be interesting to research again the depreciation of old resale flats.

Stacked Homes
Admin
2 years ago
Reply to  Lin

Thanks for your feedback Lin! Granted that the time period in which we analyse the data matters a lot too! This is also true not just for Covid-19, but when cooling measures were implemented, or when developers started to make units smaller in general. A lot of the market conditions are dynamic, and each period is different too. We just wanted to highlight that the depreciation is not as stark if we look at all of the data for the past year

Sbmmh
Sbmmh
7 months ago

Don’t forget HDBs get new leases of life from HIP I and II and NRP.

Latest Posts

orchid country club
Property Stories Finding A Better Alternative to Old Folks Homes in Singapore Part 2: Exploring Country Clubs, Surprisingly Viable?
May 19, 2024
Dawn Sen Concept Thumbnail 1 Uncompressed
Living In Inside a Serene 5-Room Apartment Where Music Fills This Calm Home
May 19, 2024
hdb resale listing service singapore
News Why The HDB Resale Listing Portal Is Actually Great For Property Agents
May 19, 2024
chose overseas property instead of singapore hdb
Property Stories I’m A Young Singaporean Who Decided To Buy Property Overseas Instead, Here’s Why
May 18, 2024
Fajar HDB 108 blocks 2
Advice Is It Worth Keeping Our Executive HDB Or Selling Upon MOP To Buy A Condo (And Avoid ABSD)
May 17, 2024
craziest flips stacked homes
Commentary 10 Craziest Property Flipping Transactions Within A Week (One Made $637k In A Day!)
May 16, 2024
5 Most Affordable 5 Room HDB Flats In Central Singapore From 720K
Units Of The Week 5 Most Affordable 5-Room HDB Flats In Central Singapore From $720K
May 16, 2024
Cosy 2 Room HDB 1
Home Tours How A Young Homeowner Transformed A 2-Room HDB Into A Cosy Space (With A Bathtub)
May 15, 2024
fuyong estate landed junction
Rent Where To Find The Cheapest Landed Homes To Rent In 2024 (From $3,000 Per Month)
May 15, 2024
Condo x HDB Stacked
Analysis This Is The Reason Why HDB Upgraders Are Being Priced Out: Analysing The Price Gap Between HDBs And Condos
May 14, 2024
hdb resale flat portal
Commentary Is HDB’s New Resale Flat Listing Service Really Going To Help Homeowners Sell Their HDB?
May 13, 2024
family home contemporary design 10
Home Tours How This Apartment In The East Was Transformed Into A Quiet Luxurious Home
May 13, 2024
Jalan Haji Alias Estate 12
Editors' Pick A Surprising Find: Touring Freehold Strata Landed Homes From $3m In Sixth Avenue
May 12, 2024
Inside A Boutique Hotel Inspired Home With Playful Colours and Shapes
Editors' Pick Inside A Boutique Hotel-Inspired Home With Playful Colours and Shapes
May 12, 2024
2 million dollar hdb
News $2 Million Dollar HDB: Is The Agent Really To Blame?
May 12, 2024
best condo layout singapore
Buying 10 Key Things You Can’t Overlook In Your Condo Floor Plan Before Buying
May 11, 2024