HDB resale transactions rise 2.7% in 2019 as prices remain flat

HDB resale transactions rise 2.7% in 2019 as prices remain flat

More Housing Board resale flats were sold in 2019 compared to the year before, although prices remained largely unchanged, official figures released on Thursday (Jan 23) showed. Kelly Wong with more.

SINGAPORE: More Housing Board resale flats were sold in 2019 compared to the year before, although prices remained largely unchanged, official figures released on Thursday (Jan 23) showed.

The number of resale flats exchanging hands rose 2.7 per cent to 23,714 last year, compared with 23,099 flats in 2018, according to data released by the Housing and Development Board (HDB).

The resale price index, which provides information on the general price movements in the resale public housing market, rose 0.1 per cent last year.

"The HDB resale market staged a surprising turnaround last year as prices of flats rebounded and sales volume rose higher last year," said Ms Christine Sun, head of research and consultancy at OrangeTee & Tie.

"The cumulative effect of multiple policies seemed effective in mitigating further price falls arising from the concerns surrounding the lease depreciation of older flats and the increasing supply of flats," she said, citing greater flexibility in using CPF to buy older flats and an enhanced CPF housing grant.

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Between October and December, resale prices rose 0.5 per cent from the previous quarter, while 6,339 flats were sold, up 1.2 per cent from the July to September quarter.

hdb resale price index graph 2019

hdb resale data 2019
The HDB resale price index indicating price changes for the fourth quarter of 2018 to the fourth quarter of 2019. (Source: HDB)

HDB data also showed that the number of flats rented out rose by 0.6 per cent, from 12,006 in the third quarter to 12,079 flats in the October to December period.

As of Dec 31, there were 57,224 flats rented out, an increase of 1.3 per cent from the previous quarter.

hdb resale prices by towns and flats 2019
Median resale prices by town and flat type for the fourth quarter of 2019. (Source: HDB)

HDB will launch 3,000 Build-to-Order (BTO) flats in Sembawang and Toa Payoh in February, its first sale exercise this year.

There will be no Re-Offer of Balance Flats (ROF) exercise in February as the public housing authority said it is “reviewing its sale processes for balance flats to better serve the needs of home buyers”.

READ: HDB to build more new flats next year to meet greater demand

Commentary: A look at HDB flat affordability after recent housing policy moves

In May, it will launch about 3,700 BTO flats in Choa Chu Kang, Pasir Ris, Tampines and Tengah. Of these, the flats in Choa Chu Kang have a shorter waiting time, said HDB.

HDB has said it plans to launch about 16,000 to 17,000 new flats this year.

Source: CNA/cy(aj)

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