Prices of secondary Home Ownership Scheme flats have doubled in seven years, an increase that is 50 percent higher than private flats, research by the Open University has found.
Researchers went through transactions in the HOS secondary market for the past 15 years, focusing on the 50 estates with the most deals. They found the price changes for HOS flats to be more prominent than for the private housing market.
“Before 2013, the increases for private housing and HOS flats were similar, but prices of HOS flats in the secondary market skyrocketed between January and June of 2013 after the government rolled out the white form secondary market scheme,” the report said.
“The price increases for HOS flats in the secondary market also topped the increases seen in the private property market, as prices of HOS flats in the secondary market rose by 116 percent from 2013 to June this year, compared with the 51 percent rise in the private property market during the same period.”
The report also found that during the time of financial crisis in 2008, prices for private housing dropped nearly 20 percentage points on average, but HOS flats in the secondary market fell only 0.88 percent.
Read the Full Article (Michael Shum 7 Oct 2020)
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