HDB resale price index down 0.1% in 2016.

This is a big improvement from 1.6% decline in the previous year.

Despite the slowing economy, HDB resale prices have not been affected as much as their private residential counterparts. In the past year, resale price index decreased by a very slight 0.1%.

According to ERA Real Estate key executive officer Eugene Lim, a major reason is the difference in characteristics between HDB resale buyers and private residential property buyers.

"As a no frills housing unit, HDB flats satisfy a housing need, whereas private condominiums are more of a housing want, with their higher prices and more luxurious facilities. Hence, HDB prices tend to be less correlated to Singapore’s economic performance," Lim argued.

Lim also pointed out that another factor which contributed to the stability of the HDB resale market was the decision of HDB to publish daily transaction details online, available for public access.

"As this initiative by HDB has been ongoing for some time, we have seen more widespread usage of this information. Negotiations are usually centred around recently transacted prices, and ultimately, the deal will be concluded at a price which does not differ too much from past prices. This is because the buyer wants to ensure that the purchase price can be supported by valuation," Lim explained.