HDB prices will come down because
1) Genuine HDB upgraders to private homes will have higher incentive to sell their HDB now. They can save 7%-10% (for PRs) on stamp duties and possibly obtain the full 80% loan of the valuation of private properties. (Though most HDB owners who buy 2ndhome for investments are likely to have fully paid off their HDB mortgage.)
2) PRs can no longer sublet their HDB homes and they are likely to sell off their HDB in time to come as it is no longer a viable investment vehicle for them. This creates a larger supply of resale HDB in the market, creating downward price pressure.
3) The current market has fears of increasing population with limited housing. The government has time and again reassured the market with its ample supply of housing pipeline. Most HDBs transacted at high prices are (Read more...)
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