The resale HDB flat market has been in the doldrums for as many as 9 consecutive quarters. It has however finally started to turnaround last quarter.
Sales volume of resale HDB flats rise in second quarter
The number of resale flats sold in Q2 have risen 33.3%. 5,941 units were sold in comparison to the 4,458 in Q1. Prices have continued to fall in the beginning of 2018, but the resale price index rose slightly at 0.1% in the second quarter.
Analysts are however hesitant about calling this a market recovery. Homeowners who are looking to sell may be more hopeful for a price-rebound in the months ahead. It is, however, worth noting that some industry experts often see a slight rise in figures in Q2 of each year. Whether this is truly a market recovery still requires further observations in the next few months.
HDB market recovery far behind that of private sector
The private property sector has been pulling far ahead in the recovery race. Private residential prices rose 3.4% last quarter, making it the 4th consecutive quarter of increase. The number of private units sold in Q2 also spiked with a 34.9% leap to hit 7,186 units. This makes Q2’s transaction volume the highest since the peak in Q1 of 2013 when 7,811 units were sold.
But with the recent property curbs, their pace may be held back. There is also a chance that HDB upgraders who had originally planned to enter the private property segment may find themselves priced out. As these buyers tend to be more price-sensitive, they may, in turn, look to upgrade within the resale HDB market instead.
Property analysts are expecting the rate of growth for 2018 to range between negative 0.3% to 1.5%.