2019 seems to have started out on the right note for the resale HDB flat market with an 8.8% growth in sales volume. 1,560 units exchanged hands last month.
January’s resale HDB flat growth first since July last year
January’s growth could be a sign that buyers have sufficiently adjusted to the cooling measures implemented in July last year. This is the first increase in resale HDB flat transactions since then.
Compared to January 2017, the growth is even more significant, with a 43% leap from the 1,091 units sold in the same month last year.
Resale flat prices also rose 0.5% from December. Though this figure is still 13.9% lower than the peak in April 2013, the fact that sales activities are usually low between December and February owing to the year-end and lunar new year festivities, this growth is a positive sign.
Analysts are contented with growth though expect a flatline for 2019
Despite an overall increase in resale flat prices, however slight, analysts are accounting some of the increased sales volumes to sellers having possibly lowered their prices as competition heats up.
As many more new flats in mature estates reach their minimum occupation period (MOP) this year, the competition may become even fiercer. Larger resale HDB flats are generally getting more interest from buyers who are willing to pay a substantial differential for them.
Buyers were willing to pay between $1,000 to $5,000 more for 5-room and executive flats while paying $1,600 to $4,000 under market value for 3-room and 4-room units.
Analysts expect resale HDB flat prices to remain flat this year or possibly declining by 1%.