With resale Housing & Development Board flats continuing their relentless ascend to record prices in nearly a decade, it seems that owners can do no wrong, regardless of which floor their flats are located on.
The dataset that we examined contains around 71,400 resale transactions from HDB spanning from 2003 to the present day, with leases commencing between 2002 and 2019.Very low - For flats located between one and three floors;Mid - For flats located between seven and ten floors; andHDB developments without floors one to three were removed from the dataset, as they may skew the results in favour of flats located on the mid to high floors, which will affect the accuracy of the analyses.
Large flats located on the "Very Low" floor range have the lowest disparity in terms of PSF compared to flats on the higher floor range.Flats on "Very Low" floors do not necessarily lose out to flats on higher floor ranges in terms of PSF appreciation Older Flats on "Very Low" floors displayed a slower rate of PSF decline compared to flats on higher floors
Across different towns, we note that those with higher plot ratios tend to have flats on higher floors performing better than those on lower floors . For such towns, views do matter to some homebuyers, and they typically spare no expense in buying such flats. Here's what the premium on higher floors looked like for resale transactions between January 2010 to end of 2011:
Overall, it's observed that the differentials in prices between estates seem to be a result of different plot ratios, allowing newer and taller HDBs to increase the disparity between the lower floor and higher floors units and not so much that ground floor unit prices are stagnant.To wrap up, flats located on lower floors are not necessarily as bad as some homebuyers may think, particularly when the property market is bullish.
Why do u worry about resale value, do u know the more expensive u sell means its more expensive fr the next generation to buy, yur generation takes 15.. 20 yrs to pay off the load.. Yur children wil take more than 30yrs to pay off the load. Have u heard off youngster complaining
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