RESIDENTIAL PROPERTY | Staff Reporter, Singapore

HDB resale prices up 0.1% in Q2

Meanwhile, the supply for BTO flats will be cut from 17,000 to 16,000.

HDB’s flash estimate of the second quarter 2018 Resale Price Index (RPI) is 131.7, an increase of 0.1% from the previous quarter (-0.8%).

OrangeTee & Tie head of research and consultancy Christine Sun noted that the RPI reversed six consequential quarters of decline. “Prices continued to trend sideways, indicating that prices are stabilizing and may rise slightly in the second half of this year, owing to the increased buying interest from displaced en bloc owners and spill-over positive buying sentiment from the private residential market.”

Meanwhile, as the HDB resale market continues to stabilise, HDB will reduce the supply of the Build-to-Order (BTO) flats in 2018 slightly, from 17,000 to about 16,000 flats.

ERA Realty key executive officer Eugene Lim commented, “The government has introduced several new measures designed to make HDB resale flats more attractive in the past year, and now that prices are stable, more buyers would be willing to consider resale flats.”

In 1H2018, HDB had offered 11,373 flats, which included 7,634 BTO flats and 3,739 balance flats offered in the Sales of Balance Flats and Re-offer of Balance Flats exercises. In August 2018, HDB will offer another 4,300 BTO flats in Punggol and Yishun.

“As HDB is going to reduce the supply of BTO flats, the HDB resale market could see more demand from younger couples in the coming months,” Sun said.

“With the new resale portal, buyers remain price sensitive and would want to ensure that the price they have negotiated and agreed with the seller is at a value that can be confirmed by HDB as the market value,” he added.

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