HDB resale prices dipped 0.2% in Q4 2018

Resale volume dropped 20.2% to 5,637 flats.

Housing and Development Board (HDB) resale flat prices slipped 0.2% QoQ in Q4 2018, an announcement revealed. For the whole of 2018, prices of HDB resale flats decreased 0.9% which is smaller compared to the 1.5% YoY dip recorded back in 2017.

The agency also noted that HDB resale transactions dropped 20.2%, QoQ from 7,063 flats to 5,637 flats in Q4. On a full year basis, resale transactions rose 4.6% YoY to 22,077 flats compared to the 23,099 flats resold in 2017.

OrangeTee & Tie head of research and consultancy Christine Sun thinks that the less pronounced price decrease compared to the 2017 could be fueled by more transactions of newer HDB flats that have hit their Minimum Occupation Period (MOP) in non-mature estates that were able to get good price offers.

Also read: Million dollar HDB resale flats on the rise

“More HDB resale flats have also been sold above $700,000 last year especially non-standard flats such as DBSS and flats at Duxton@ Pinnacle,” Sun commented. “A record 71 flats were also being transacted above $1m.”

Sun added that the widening gap between newer and older flats could be a silver lining for those who own older flats, with the government’s plans for the Voluntary Early Redevelopment Scheme (VERS) and the Home Improvement Programme (HIP) which could lure some buyers to older flats for their affordability.

Also read: VERS and HIP II could shake stagnant outlook of HDB market

Meanwhile, ERA key executive officer Eugene Lim believes that the slowly rising interest rates which have influenced buyers to be more conservative when making offers to sellers.

“Most HDB buyers are price sensitive and do not want to pay above valuation,” he added. “As such, most will make conservative offers on the price rather than an above-valuation price; unless the flat has fantastic attributes; eg. well-located, high floor with unblocked view and nice renovation.”