Dear readers, it is good to know that the government is doing something on the property front, referencing the property-related measures announced at National Day rally 2024 as well as the recent property cooling budgets.
Despites several rounds of cooling measures, it seems that Condominiums are getting more and more expensive as measured by the $ per square foot (psf) of the condominiums here. It is not just the increasing trend of psf of condominiums in the CCR or RCR. These days, the increasing trend of psf for OCR condos is such that OCR condos can easily cost $1,500 or above in psf! Increasing trend in psf seems to be the general trend, despite some corrections in psf of condominiums during recessions or property cooling rounds.
If over the long run, condo prices inevitably go up, that will means more Singaporean HDB flat owners may find it harder to achieve their dream of upgrading from HDB to condominiums. A condominium is still in the belief of many, a marker of success.
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On the other hand, there is an assumption that HDB flats will go down in value over time: the lease decay factor. I believe the downward trend is not necessary as if HDB flats are a depreciating asset over time, it will be disappointing to the many here who own a HDB flat. I would think the with revitalization and long-term demand of HDB flats, value of HDB flats could possibly rise over time, albeit on a lower rate than that for condos.