More HDB flats sold in resale market in Q2

The transaction volume for resale HDB flats rose a whopping 29.8% last quarter in comparison to Q1.

6,276 resale HDB flats sold in Q2

In the second quarter, 6,276 resale HDB flats exchanged hands; a marked increase from the 4,835 units sold in the first three months of the year.

HDB in Lorong 3, Toa Payoh. Picture: iProperty

In comparison to Q2 last year, this year’s figures have also climbed 5.6%.

Sale prices of resale HDB flats have however dipped slightly by 0.2%. It is the fourth consecutive quarter of falling resale flat prices.

Analysts have however noticed that the rate of decline has eased from 0.3% in Q1 to 0.2% in Q2.

Estates, where buyers paid the highest median resale prices of $839,000, $815,000 and & $780,000, were in Toa Payoh, Queenstown and Bukit Merah respectively.

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Q2’s figures first increase since July 2018

Even Q2 is traditionally an active period for the local property market, analysts are nevertheless pleased with the possible signs that the market is turning around.

The revision of rules to allow buyers to tap more of their CPF funds for older flats may have changed the game.

Toa Payoh Lorong 2. Picture: iProperty

While price recovery may not happen soon due to the increasing number of new flats reaching the end of their minimum occupation period (MOP), sales volume may continue to trend upwards in the coming months.

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The policy shift could have spurred the recent activity as sellers see increased interested especially in older units. The number of older flats sold to buyers who have received proceeds from collective sales is also on the rise.

Buyers are perhaps still willing to consider resale flats for the space they provide but competition from the private sector is also proving to be strong.

The location will continue to be the main criteria buyers consider when selecting a resale flat.

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