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    HDB Resale Prices Drop Despite Rise in Volume

    After recent official data revealed resale prices of Housing Development Board (HDB) flats fell 1.5% in 2017, fresh figures now show that the price-drop extended to the last month of the year even as the volume of transactions increased.

    BankBazaar Singapore – January 4, 2018

    SINGAPORE: According to the online real-estate services provider SRX Property, prices fell 1.8% in December 2017 over the same month in the previous year. The number of units sold increased 13.9%.

    On a monthly basis, the prices have seen a marginal increase of 0.1%. Resale prices of HDB 3-room flats rose 0.2%, HDB Executive flats grew 1.5% and HDB 4 fell 0.9%. Prices of resale of HDB 5-room flats remained steady over the previous month.

    The resale volume fell 19.9% over the previous month. The final month of the year often sees fewer transactions but the decline is still more than the drop seen from November to December 2016.

    Some experts are of the opinion that the decline in resale prices seen throughout the year was mainly because of the shifting habits of homeowners. According to Ismail Gafoor, CEO of PropNex Realty, an increasing number of HDB owners are moving to private properties, although resale prices could pick up in 2018, according to The Straits Times.

    Others attribute the fall in resale prices to a combination of several factors, including a rise in housing grants, initiation of Balance Flats re-offer and easier access to BTO flats in some areas. Eugene Lim, key executive officer of ERA Realty, also said that certain comments from National Development Minister, Lawrence Wong, had hurt demand.

    Wong had, last year, said that some HDB flats may not be eligible to be chosen under the government’s urban development plan, the Selective En bloc Redevelopment Scheme. Moreover, flats that are not chosen must eventually be given back to the state.

    However, ERA is also positive on demand picking up this year among those who do not meet the criteria for new flats. The introduction of HDB Resale Portal, aimed to ease the process of buying and selling a resale flat, could also encourage buyers.

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