Channel NewsAsia

HDB resale flat prices continue to fall

With the government stating it is not time to relax cooling measures just yet, some property analysts forecast an overall price decline of up to eight per cent this year.

SINGAPORE: Prices of HDB resale flats have continued to fall for the sixth straight month, dipping 0.9 per cent in July compared to June. That is also a 29-month low since February 2012.

This is according to the Singapore Real Estate Exchange (SRX), which released its monthly flash report on Thursday (Aug 7).

As for resale volume, SRX data showed there was a slight month-on-month increase, with about 1,341 HDB resale flats sold in July compared to 1,315 in June. Some property analysts have said resale transaction volume for the year is likely to be lower than last year, which was already an all-time low.

Most flat types saw price declines in July, with prices of three-room flats falling by 1 per cent, and four room flats by 1.8 per cent. Five-room flats saw a more moderate 0.4 per cent price decrease. Only executive flats saw a slight 0.1 per cent increase.

Overall, resale flat prices have fallen by four per cent since the beginning of this year. This is on the back of loan curbs and more new flats being launched by the HDB.

With the government stating it is not time to relax cooling measures just yet, some property analysts forecast an overall price decline of up to eight per cent this year.

"The government's objective has been quite clear, to basically moderate property prices in the overheated HDB resale market. I believe they are looking for signs that the market has fully stabilised. That even if they were to tweak or remove any of the measures, it will not lead to a sudden quick rebound in property prices," said Eugene Lim, Key Executive Officer of ERA Realty Network.

Tweet photos, videos and updates on this story to  @channelnewsasia