HDB resale prices in Q1 stay flat

HDB resale prices dipped 0. 1 per cent on a quarter-on-quarter basis in the first quarter of 2016, in line with earlier flash estimates.

Property consultants continue to believe that the public housing resale market is “at a new equilibrium” and stabilising.

Resale transactions slumped 10. 9 per cent from 4, 992 cases in the fourth quarter of 2015 to 4, 449 cases in Q1 2016 – although this was expected given the festive season in February, which was also a shorter month.

Year on year, transactions were actually up 7. 6 per cent. This is the strongest – in terms of units transacted in the past four years, noted a consultant.

Transactions are expected to gradually increase due to the falling prices which will slowly attract more buyers to pick up resale units, he added.

He expects a price movement of about -1 to +2 per cent for HDB resale flats, with volume exceeding 20, 000 units due to the lower asking prices.

ERA Realty Network key executive officer Eugene Lim noted that “this trend of minute price movements has been going on for the past four quarters”, confirming his belief that the HDB resale market has largely stabilised.

He attributes the reason to price transparency: “As HDB has made public resale transaction data internet, buyers took to working with these prices seeing that reference things when making purchase contract.

“This features contributed into the overall value stability seeing that buyers aren’t going to be likely to present you with a price which in turn deviates appreciably from recently available transactions seeing that shown by data.

“In addition, with economic headwinds and soaring interest rates, potential buyers are likely to keep on being conservative when reaching their presents to purchase any sort of flat. micron

Resale residences in an adult estates will continue to get buyers seeing that build-to-order (BTO) flats during these areas are quite rare, the guy added.

The guy expects a small decline of less than just one per cent pertaining to HDB second-hand prices on 2016. Second-hand volume may come in for about twenty, 000 to 22, 000, up out of about 20, 300 residences resold on 2015.

HDB had available 4, one hundred seventy flats on sale under the January 2016 BTO exercise.

During the upcoming Could sales work out, it will give about 5, 000 BTO flats regarding 5, 000 balance residences. More details as well available closer to the launch with the sale work out.