It seems like 2016 could be the year when things stand still. Good for some, and a little less ideal for others. But either ways, it may be a good time for the dust to settle, for the market to finally take stock of the property cooling measures and interest rate hikes, to balance the supply and demand scale, and for the authorities to closely monitor and plan their next steps.
Photo credit: Singapore Tourism Board
Prices of resale HDB flats have stayed the same last November and December, perhaps signalling a stabilisation of the market. There was a slight 0.3 per cent and 0.1 per cent rise for 3- and 4-room flats, but a drop of 0.4 per cent for 5-room flats and ECs (executive condominiums). Flats in mature estates are still in demand, with a 0.2 per cent rise in prices, though in comparison, prices fell the same percentage in non-mature estates.
It has taken resale HDB flat prices some time to fall a narrow margin, thus a soft landing could be said to have been achieved considering last year only saw a 1.3 per cent drop in price index. Property experts are expecting prices to hold at their current level for the rest of the year despite HDB’s announcement of their intended launch of 18,000 new BTO flats this year, as the target audience for both flat types are different, with those searching within the resale HDB market most likely requiring a HDB flat in the short term. New flats typically require 3 to 6 years to build.