HDB resale prices crashed to 40-month low in November

Prices dropped 6.3% last month.

Prices in the HDB resale market continued to soften in November, with resale costs crashing to a 40-month low last month.

According to SRX, HDB resale prices dropped 6.3% year-on-year last month. Executive flats registered the largest month-on-month price decline, with prices slipping 2.2% in November.

SRX notes that the price decline in the HDB resale market has outpaced that of the private resale market because of the government’s BTO policy.

 "HDB prices have declined more than that of private resale flats because the government has been able to fundamentally change both supply and demand in the HDB market whereas it has only changed demand on the private resale side," said Jeremy Lee, chief technology officer for SRX Property.

From this year to 2016, MND expects 6,000 HDB upgraders to take the keys to their BTO flats each year. This number is twice that of last year.

The upgraders must sell their existing HDB flats within six months of getting their BTO keys. The net result is that there is more supply in the HDB resale market.