Resale flat prices fell 0.2% in the fourth quarter of 2018, with a 0.9% dip for the entire year.
2018’s decline in resale HDB flat prices gentler
Resale HDB flat prices continued to fall last year. However, the decline was more gradual following a 1.5% fall in 2017.
The Housing Board plans to release approximately 15,000 new build-to-order (BTO) flats this year. In addition, home seekers can also expect a Re-offer of Balance Flats exercise.
The total number of BTO flats planned for 2019 will however be lower than the 17,000 released last year.
While taking the decline into consideration, analysts are however not entirely despondent about the market.
There was an instance of non-standard flats which have reached their minimum occupation period (MOP) last year selling for attractive amounts.
Perhaps part of the reasons contributing to the price decline was last July’s property cooling measures as well as the authorities’ expression of concerns over the depreciating value of older HDB flats.
Resale HDB prices estimated to rise 1% to 2% in 2019
While public housing is vastly different from the private property market, analysts think that activity here will remain steady as HDB flats remain an attractive option for homeowners.
HDB flat buyers can apply for various grants and subsidies from the government. New flats may be cheaper than resale units but the latter may still find favour among buyers who wish to secure a unit quickly and also in a location of their preference.
With more properties which were sold during the height of the collective sale fever over the past 2 years exchanging hands this year, there may be more displaced homeowners looking for new homes.
This could mean a boost for the property market overall, and some analysts are expecting resale HDB flat prices to rise 1% to 2% this year.
Others, however, are less optimistic, with predictions of a 0% to negative 2% change in resale HDB flat prices, citing more HDB flats reaching their MOP this year and the unresolved issue of lease decay.