While last month’s price decline in the HDB resale flat market may be slight at 0.3 per cent, a quick rebound may yet to be. Minor fluctuations may still occur, but prices seem to be stabilising. The number of flats changing hands also seem to be on the increase, up 3.9 per cent from August.
The property cooling measures however continue to impact the property market with falling prices and sales volume in the private property market. While the effect is less apparent in the HDB resale market, prices have gone down by 8 to 9 per cent since its peak in 2013. Property analysts are expecting more gradual fall for the rest of the year, at a less-than-1 per cent monthly decline.
November’s mega-launch of 12,000 BTO (Build-to-order) flats may however take a toll on the resale market as buyers may hold back on buying from the resale market. On the other hand, most recent policy changes in public housing may also help buyers qualify for and attain a resale flat more easily. Income ceiling for resale flats have been raised from $10,000 to $12,000 and families who wish to purchase a resale flat near their parents or married child can apply for a $20,000 proximity grant.
The resale market has take some time to cool, but considering it has fallen from its 3,649 units sold in May 2010 to 1,504 in September 2015, all eyes and ears may be on when the authorities are likely to relax the property cooling measures.