HDB resale prices down slightly in Q1, continuing declining trend

HDB resale prices down slightly in Q1, continuing declining trend

View of an HDB block from a corridor - file photo
View of HDB blocks, seen from the corridor of another block. (File photo: Gaya Chandramohan)

SINGAPORE: Prices of resale flats for the first quarter of this year fell 0.3 per cent from the fourth quarter in 2018, continuing a declining trend, according to flash estimates released by the Housing and Development Board (HDB) on Monday (Apr 1). 

The resale price index - which provides information on the general price movements in the resale public housing market - is estimated to have dipped slightly to 131.0.

Resale prices for HDB flats have been on the decline in the last two quarters. Prices fell 0.1 per cent in the third quarter and 0.2 per cent in the fourth quarter of last year.

HDB flash estimates
Source: HDB

Still, the HDB resale market has displayed "signs of resiliency" compared to the same period last year, said Propnex Realty's CEO Ismail Gafoor. 

"This is primarily due to the overall demand of 23,099 resale transactions last year," he said.

On the supply side, Mr Gafoor also noted that about 30,000 HDB flats will reach their minimum occupation period (MOP) this year.

"Therefore, with the maturity of MOP flats adding on to the supply, we are anticipating prices of public housing to hold at a marginal increase of 1 per cent for the entire year of 2019," he said. 

HDB also announced on Monday that it will offer about 3,400 Build-to-Order (BTO) flats in Kallang Whampoa, Tengah and Woodlands in May. There will also be a concurrent Sale of Balance Flats exercise.

HDB has said it plans to launch 15,000 new flats for sale in 2019.

Source: CNA/mn

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