Common wisdom holds that, because of their 99-year lease, older HDB flats should see a steeper depreciation than newer ones. For many homeowners, it’s a good reason to sell and upgrade early. It was even a big point of online debate in 2018 when Minister Khaw Boon Wan said even 50-year-old flats could appreciate. But how true is all this? We did some digging:

Methodology:

We examined all transaction data from January 2021 to November 2021 (incomplete data for November 2021). Next, we looked at the actual transacted prices of flats across the different ages and plotted them out. Finally, we looked at the price per lease remaining and study how it differs from the theoretical price behaviour.

Do note, however, that this study only compares age and price. It does not factor in location. As a result, there may be “old” properties that are just located in better places, hence the location factor helps sustain prices more than the newer flats. To better address this, all transactions are used instead in hopes that the aggregate data should paint a sufficiently accurate picture.

We do also note that these circumstances playing out have been impacted because of the pandemic, and it will be interesting to do a separate study once this period is over.

For more, please visit the full article at: https://stackedhomes.com/edito....rial/older-hdb-flats

Disclaimer: This study does not apply to older flats moving forward given we do not know how prices would behave past the 60th year mark. The study only used existing data points to identify the behaviour of actual prices and we do not know the breaking point when old flats would see a strong depreciation in prices.

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Stacked is an online editorial aimed at helping Singapore home buyers, sellers and renters make better decisions. By regularly conducting research and publishing our findings, we hope to give our readers a much better perspective on buying, selling or renting Singapore real estate.

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