RESIDENTIAL PROPERTY | Staff Reporter, Singapore

HDB resale prices decline more slowly in 2015 as transaction volumes surge

Prices decreased by 1.6% for the entire year.

Resale prices of public flats declined by 1.6% in 2015, a much more marginal pace of contraction compared to 4.6% in the preceding year.

Meanwhile, a total of 19,306 units were sold on the secondary market, an increase of 11.5% over 2014’s 17,318 units.

Over in the rental market, a total of 41,531 units were sublet last year, an increase of 14.6% over 2014 numbers.

Analysts note that the slower pace of price declines and the surge in transaction volumes suggest that the market may have finally found its equilibrium.

“This increased price stability could be pointing to a new equilibrium, [or] the price level that buyers are willing to accept and pay,” ERA Realty commented.

“However, it remains to be seen how large an impact these factors will have on the HDB resale market, hence it is still too early to say that the market has turned. The current cooling measures affecting the HDB market are likely to continue being in place as this soft landing is what the government had in mind. As such, we expect a gradual decline in prices in 2016, probably around 1% to 3%,” ERA added.

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