Effects from the most recent market changes may have affected the private property segment more significantly, but the resale HDB flat segment seems to have taken a slight hit as well.
Resale HDB flat prices continue to dip in Q3
In the third quarter, resale HDB flat prices dipped a further 0.2%, following a 0.1% fall in Q2. That is 1% lower than Q3 in 2017.
Analysts say buyers may prefer resale flat for the flexibility in securing a home when and where they like, barring the property-shopping process of course.
The wait for a new build-to-order (BTO) flat can take up to 4 years and oftentimes, the application and balloting process also adds to the stress of waiting for a new home.
The lack of an income ceiling for resale flat buyers, except for those who are taking a CPF loan or are applying for HDB subsidies and grants, could also account for a stable number of buyers who prefer resale HDB flats than private apartments.
Price decline could also be due to other concerns
Industry players are however attributing some of the slow market growth in the resale flat sector to other concerns buyers may have – such as the lease-term of HDB flats.
The market could also be slowing as HDB upgraders are now eager to sell for now, though the situation may change once more completed flats hit the market.
Another possible reason could be that sellers of flats which were sold recently have done so at prices lower than what would cost them to purchase a new one. These buyers may be looking at private properties of smaller sizes, or are simply unwilling to pay more to remain in the public housing sector.
Buyers who may continue to take their pick from the resale HDB flat pool, however, are those who have been displaced by recent en bloc deals.