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May 2021 HDB BTO guide prices are out!



The May 2021 HDB BTO guide prices are out!


These are the benchmark prices that will likely not go any lower regardless of any incoming cooling measures, since BTOs are pretty much the “ultimate subsidy” that the government can provide for us to make housing affordable.


Here we can see an upward trend of prices from the last few rounds of BTO exercises, particularly in the up-and-coming Tengah estate!


This is mostly due to rising land and manpower costs, especially after this pandemic period, where we are facing very limited foreign labour supply.


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Now why are the May BTO prices so important for us?


Since BTOs are pretty much the lowest forms of new housing options that we can find, a rising trend of prices for these "ultimate subsidy" shows simply one thing:


Property prices will only keep going up. Not down.


If an undeveloped town of Tengah 4-rm flats can fetch over $400,000, how much will their future sale prices be when they hit the resale market?


What will the repercussions be on the rest of the market?


Will the private property market finally close the gap with these high HDB flat prices?

OR

Will the private property market go even higher with these higher HDB flat prices setting up a higher baseline for them?


We think the answer is rather obvious.



Do you?




(Photo courtesy of DollarsandSense)


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