2021 has been one of the toughest years for first-time homebuyers; and for those who want resale flats, it gets worse. Take a deep breath, because as of Q3 2021…resale prices are now officially worse (higher) than they were even in the crazy days of 2013. The questions on everyone’s minds right now seem to be (1) how long will it last, and (2) are we going to see government intervention soon? Here’s our take:
What’s happening to resale flat prices in 2021?
Source: Square Foot Research
If we go by pure price per square foot, we can see the last peak was in May 2013. At the time, resale flat prices – island-wide – stood at around $478 psf. At the time, the government responded with tweaks to Cash Over Valuation (COV) rules and the Mortgage Servicing Ratio (MSR), which sent resale flat prices plummeting.