HDB resale transaction volume crashed to 10-year low in 2014

Prices slipped by 6%.

The HDB resale market recorded a lacklustre year in 2014, after the full-year resale figure crashed to the lowest recorded in a decade.

Resale volume slipped 4.3% year-on-year to 17,318 units, while overall resale prices recorded a 6% drop for compared to 2013.

While this has been particularly bleak for those awaiting to sell their HDB flats or upgrade, analysts predict that the longer-term outlook may show signs of improvement for the year.

“After experiencing consecutive months of decline in prices and transactions, many have accepted the downward trend to be the ‘new normal’, with modest dips likely to occur in the next months. Indeed, looking at current market conditions, there is a high probability that activity will stay muted. Prices too will remain impacted by a looming flood of new Build to Order (BTO) units and the unwavering influence property measures, such as a lower mortgage servicing ratio and shorter loan tenure, have on access to capital,” stated PropertyGuru.