With private home and HDB resale flat prices remaining at a high, some homeowners may be wondering “Should I sell my home?” to turn a tidy profit. However, there are signs pointing towards the private market turning into a buyer’s market in Q3 2024. Furthermore, HDB resale flat price growth has slowed down significantly in post-pandemic Singapore.
But for the sincere sellers out there who need some help deciding when is the ‘best’ time to sell your home, we’re here to help. We’ll talk about the current market, reasons sell your HDB flat or sell your condo, and what you can do to navigate a buyer’s market.
Also, we’ll show you how understanding the value of your home is a crucial step in making informed decisions when selling your property.
Reasons for Selling Your Home
Save for migrating overseas, unexpected deaths or divorce, most would sell their HDB flat or sell their condo for financial reasons. It could be:
- You need more space for your growing family
- You want to move closer to your parents
- You would like to move near a school you want your child to attend
- You are upgrading from an HDB flat to private property; or you are upgrading from an HDB flat to one that is larger one and/or in a better location
- You are facing financial constraints or have an unexpected expense and need to sell property for cash
- You want to monetise the capital gains when prices are high
How to Determine the Best Time to Sell Your HDB flat or Sell Your Condo?
What you may consider to be the ‘best time’ should be pegged to a quantifiable target. For example, you may want to sell your HDB flat for a specific amount and time. If you are a BTO flat owner, what this looks like could be selling your flat when it fulfils its Minimum Occupation Period (MOP) and it can command a selling price that is 50% more than of the purchase price.
If you’re trying to sell your HDB flat or sell your condo when the market is at its peak, the goal may be too vague and the ‘best’ time is impossible to determine. For potential homesellers wondering “Should I sell my home?”, the next question you may have is “When is the best time to sell?” Currently, the market is slowly shifting from a seller’s market to a buyer’s market.
Private housing prices have stabilised, with prices dipping in Q3 2024 in line with falling transaction volumes. While HDB resale flat prices and transaction volumes continue on their upward trajectory this quarter, largely because of slight supply tightness.
This trend is unlikely to endure in the long-term as more BTO flats continue to be completed and new launches have increasingly shortened completion times. The new property cooling measures, raised property taxes, and new BTO classification model among other factors will likely temper the market even further.
Selling in a Buyer’s Market: What Homesellers Need to Know
1. Homesellers May Have to Reduce Asking Prices
It is true home prices remain at a high. But as we are transitioning to a high-price lower-demand scenario, it is necessary to understand buyers have more bargaining power. Consequently, homesellers in a buyer’s market will have to adjust their expectations on how much their property can fetch.
Previously, buyers would match high asking prices due to the tight supply and having urgent housing needs. Plus, most potential homesellers did not have a strong urge to sell, which contributed to asking prices remaining propped up. Now, if you sell your HDB flat or sell your condo, you may have to reduce your asking prices when negotiating with potential buyers.
2. Homes May Take Longer to Sell
Facing an uncertain economic outlook and global geopolitical climate, buyers are looking to find value as they continue to practice financial prudence. This may cause homes to take longer to sell as buyers remain cautious.
But with borrowing costs expected to come down (alongside the four expected interest rate cuts in 2025), buying property is likely to become more manageable. In turn, this may push some individuals into making purchase decisions.
3. Don’t Neglect Marketing Your Property
As a homeseller, staging your property to make it look more attractive in picture could be one way to market your property. Hiring a good property agent will also be a good way to reach out to more potential buyers.
If you need help finding a suitable property agent, you can use the PropertyGuru agent directory.
Can You Really Time the Market?
Ultimately, there isn’t an objective ‘best’ time to sell your HDB flat or sell your condo. You can never time the market perfectly either. When is the best time to sell your property will depend on your unique financial circumstances and needs. But what you can do is to ensure you get a fair price as a homeseller.
By getting an estimate of your property’s fair market value, you have a benchmark to gauge off of to accurately price your home.
Using Property Valuation Tools to Price Your Home Competitively
The easiest way to do so is to use free online tools like our home valuation tool for an estimate. The PropertyGuru Home Valuation tool draws on past transaction data to provide an estimate in just two minutes, saving you both time and the hassle.
Alternatively, under each sale listing on the PropertyGuru website, you will also find a ‘pricing insights’ section. This shows including recent transaction prices and price trends for properties in the neighbourhood and can serve as a secondary pricing reference.
If you sell an HDB flat, you can also look up the latest HDB transaction history for your address. For those selling a private home, consulting a licensed property agent who specialises in selling properties in your neighbourhood is an option. Sometimes, these agents would provide a free estimate to attract you as a client.
With that, we hope you’ve learnt how to best sell your HDB flat or sell your condo. Good luck!
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