The number of HDB resale flats which exchanged hands in the last 2 months have increased by more than 8 per cent. A sign property analysts are taking as a positive.
Photo credit: The Singapore Tourism Board.
With a consecutive 2-month rise in prices, at 0.1 per cent in June and 0.2 per cent in May, the HDB resale market seems to be showing signs of bottoming out and a turn for the better may come quite soon. In the months prior, when the property cooling measures just began to take effect, it were the four- and five-room flats which suffered the biggest hit in price drops. But recent market figures seem to show that prices in these segments have risen by 0.3 and 0.5 per cent of late, followed by a 0.7 per cent in executive flats (EC) prices as well. The three-room HDB flats segment however have seen a 0.2 per cent fall in prices.
In the year ahead, as the government reduces the supply of new BTO flats, buyers may have to turn to the resale market instead, which may in turn positively affect the number of sales and prices. However, the rebound, though happening, may be slow as buyers may be more selective of their choice of units and there may be more put into the market as BTO flats reach completion and those who have secured a new flat may be pressured to sell within a stipulated 6-month period of getting the keys to their new units.
