HDB resale market shows signs of stabilising

HDB resale flat prices appear to have bottomed out.

Resale prices of HDB flats in the third quarter of 2016 remained unchanged from the previous three-month period, revealed more complete data published by the Housing Board on Friday (28 October).

But resale transactions fell 5.5 percent from 5,838 cases in Q2 to 5,514 cases in Q3.

The number of applications approved to sublet HDB flats dropped 8.8 percent from 11,824 cases in Q2 to 10,789 cases last quarter. As at 30 September, 52,394 HDB flats were sublet, up 0.4 percent from 52,171 units in Q2.

“The HDB market is showing signs of stabilising as the price gap between buyers and sellers narrow. So, barring unforeseen economic shocks, the secondary market ought to be entering a new state of equilibrium. The potential increase in the US Fed rate may be a concern, but this may be cushioned by government grants offered to buyers,” said Dr Lee Nai Jia, Director, Head of Southeast Asia Research at property consultancy Edmund Tie & Co.

“Additionally, we anticipate public homes in the central area to command high prices, unless policies – aimed at protecting the objectives of public housing – are enacted,” he added.

Meanwhile, the HDB will launch about 5,090 new flats in Bedok, Bidadari, Kallang Whampoa and Punggol in the November Build-To-Order (BTO) exercise. About 5,000 balance flats will also be offered in a concurrent Sale of Balance Flats exercise.

Source: HDB

Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg