The second quarter of 2017 saw the highest number of resale HDB flat transactions clocked in the past 4 years. 6,001 resale flats exchanged hands in Q2, up 32.5% from the 4,530 in the first quarter. In the second quarter, the HDB flat price index also fell by 0.1%.
It could be too early to tell whether the increase in sales volume was due to the increase in government grants or the stabilising resale market, but either ways, the increase points to the market segment’s move in the right direction. Resale HDB flat prices have been falling since 2013.
While the fall may not be drastic or sudden, changes in the sector are significant. No longer are cash-over-valuation prices a major point to quibble over, especially as the change in valuation procedure has increased transparency in the selling and buying process. The buyer must now have a valid valuation report for the flat they are purchasing, with the valuer coming from the Housing Development Board (HDB).
Following the decline since 2013, transaction volume of resale HBD flats has been increasing from 2014. In 2014, 17,318 sales were registered, with the numbers increasing to 19,306 in 2015 and 20,813 in 2016. Property analysts are hopeful that the number of resale flats sold this year will go beyond the 22,000-unit mark.
They also older flats may find that the number of years left on their lease could be a significant obstacle when to comes to finding a buyer. That said, units near areas which have recently completed en bloc sales may find that they are in demand and can command higher asking prices.