2018 may have started off with a slight bump in resale HDB flat prices. What will the rest of the year be like for this market segment?
Busy start to the year factored into reasons for dip
Resale HDB prices fell 0.5% last month from December 2017. Prices were 2% lower than in January last year, down 13% from the peak in April 2013. This may not be news for the consumer as prices of HDB flats have been falling since its heyday in the earlier part of the millennium.
Sales volume fell 31.4% in January this year, likely due to the start of the new year following the holiday lull. 1,089 resale flats were sold last month in comparison to December’s 1,587. The highest number of resale units sold was 3,649 in May 2010.
Industry experts are however unperturbed by the dip as January is traditionally a quiet month for the market. As everyone gets back into the swing of things, the market is bound to have a muted showing.
Prices of 4-room and executive flats buck the trend
The new HDB portal launched on 1 Jan this year allows individuals to navigate and complete the buying-selling process more quickly. Buyers, sellers and agents alike could still be working out the kinks in the system or holding out to see how it performs.
There are however differences in the type of units sold. Prices of 4-room and executive flats rose 1.3% and 0.4% respectively while that of 3-room units fell 2.3 and 5-room flats, 1.2%. Resale flats in non-mature estates fared better with a 0.5% increase in prices. But in mature estates, prices fell 1.8%.
Buyers of 3-, 4- and 5-room flats were paying on an average $3,000 lower than market value. The executive flat segment bucked the trend with a positive $2,000 average.