The recent BTO launches have drawn some potential buyers away from the resale market.
HDB resale volume continued its downward trajectory in May, both on a month-on-month (-5.3%) and year-on-year basis (-11.7%).
OrangeTee & Tie head of research & consultancy Christine Sun noted that without the speculative element of Selective En bloc Redevelopment Scheme (SERS), some buyers may be less motivated to purchase resale flats now especially the older flats.
“The recent BTO launches have also drawn some potential buyers away from the resale market. As a result, sellers are taking longer to offload their units due to the decreased demand,” she added.
Moreover, there were rising concerns about the ageing HDB flat leases amongst younger buyers, with some choosing to sit on the sidelines as they wait for further discussions on this matter, Sun said.
However, displaced en bloc sellers who are now streaming into the resale market seemed to be less concerned as many are able to pay their purchases fully in cash.
“Many of these buyers are currently looking out for larger resale flats such as 5 room flats or executive maisonettes in the central areas or near their displaced homes. Therefore owners of these flats could see greater demand in the coming months,” she concluded.
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