November’s resale HDB prices showed a 0.6% increase, the largest month-on-month rise this year yet.
Resale HDB prices showed a minimal increase in 2019
Through 2019, resale HDB flat prices have shown minimal upwards movement with increments in the range of minus 0.2% to 0.2%. Last month, however, the price index showed a 0.6% increase, the largest thus far this year; and possibly the strongest showing in the past 37 months since September 2016, according to analysts.
3-room, 4-room and executive flats all showed price increments of 0.1%, 1.2% and 1.1% respectively. Prices of 5-room flats, however, fell 0.1%.
The last quarter of the year is usually a lull period for the property market, with fewer transactions. Last month, however, a higher sale volume was recorded in comparison with the same period last year. Resale prices were also 0.4% higher in a year-on-year comparison.
Some analysts have attributed it to the implementation of the Enhanced Housing Grant (EHG) where higher grants of up to $80,000 were made accessible to eligible first-time flat buyers regardless of whether they were buying a new or resale flat.
In addition, restrictions on the type and location of the flat were also lifted.
2020 could see the highest number of flats in 14 years
1,915 resale HDB flats exchanged hands last month, a 13.5% decline from October’s 2,213. The slower activity is however normal for the year-end and analysts are hopeful as the sales activity last month was still above the previous 12-month average of 1,835 units, showing a healthy resale HDB market.
Come 2020, market conditions could shift as an additional 26,100 HDB flats may enter the resale market next year, making this the largest number of flats in the market in 14 years. Within the next 3 months alone, about 4,432 flats will reach the end of their minimum occupation period (MOP) and be eligible for resale.
Last month, the most expensive resale flat was sold for $1.08 million – a 5-room flat in Commonwealth Drive on a high floor. Analysts say that the supply of resale HDB flats and the EHG may end the 6-year decline of HDB flat prices.