[G.1] Median HDB Flat Rents Falling

Median rents for five-room flats dropped from $2,000 to $1,800 a month in the first three months of this year, while those for four-room flats fell from $1,800 to $1,700.

The decline was across most locations, affecting central areas such as Bukit Merah as much as outlying ones, including Punggol.

But, according to the latest HDB data, two- and three-room flats maintained their median monthly rents at $1,100 and $1,500, respectively.

At Normanton Park near Queensway, for instance, a 1,200 sq ft three-bedroom apartment can be rented for about $2,300 to $2,500 monthly – down from about $3,000 at the peak of the market. This may attract HDB-dwellers to move over, as a five-room flat in nearby Holland, Queenstown or Telok Blangah would cost about $2,000 or more a month to rent.

The lower rents of nearby condos or apartments often affect the rents of HDB flats. If the current trend persists, HDB sub-letting rents will have some way to fall.

[G.2] HDB Resale Prices Easing in Most Heartlands

Despite decline in the overall transaction volume in April and May 2009, resale HDB flats at the top three best selling heartlands estates, i.e. Jurong West, Tampines, and Woodlands continue to attract droves of buyers and the median resale prices of 3-room, 4-room, and 5-room flats continue to rise.

The resale volume of 5-room flats at Woodlands went up from 57 units to 62 units and the median price went up from $341.5 to $346.

The resale volume of 4-room flats at Jurong West went up from 63 units to 66 units and the median price went up from $285 to $305.

In May 2009, the only flat type that enjoyed a rise in the resale volume was E-flat which rose to the highest 140 deals in 2009. However, resale prices for E-flats continue the downward trend in 8 out of the 10 most sellable estates. With Bt Batok enjoying an impressive rise in the resale prices as well as resale volume.