In which areas did HDB resale prices depreciate the most?

Sengkang and Punggol top the list.

Not all HDB estates were created equal. A report by PropertyGuru revealed that aspiring flat upgraders in Sengkang and Punggol will find it more difficult to dispose of their flat compared to resale flat sellers in other estates.

According to the report, resale flat sellers in these two districts felt the most pain as a result of prices going south in both the 4 and 5-room unit category.

Resale prices for 4 room flats in Sengkang depreciated by 9.2% last year, with a median valuation of $446,000 between Q1 to Q3 2014. 5-room unit prices in the district slipped 8.3% during the year, from a median price of $535,167 to $491,000.

Resale price for 4-room properties in Punggol also registered a 9% decline to arrive at a median price of $457,000, while 5-room units were slipped to a median prices of $555,333 from $562,500.

“The fall in prices within these new estates can be attributed to the abundance of sellers within a certain demographic. Most homeowners within Sengkang and Punggol are young couples who could be looking to move elsewhere to upgrade in order to suit their families' evolving needs, as such, creates a situation where supply of houses entering the resale market will exceed the demand into these areas,” the report stated.

Several launches of Build-to-Order (BTO) flats in these two districts could also play a key role in placing pressure on existing homeowners into selling their flats at a lower price than expected.

“This is likely as sellers will be inclined to choose to sell now, rather than run the risk of selling their flats at even lower prices when new flats have been completed in the future,” the report stated.