The Housing and Development Board (HDB) admitted recently that the resale prices for their offered flats are still on a rundown. According to them the value declined by as much as 0.4 percent during the second quarter of 2015. This is actually on top of another 1 percent decline, which happened during the prior quarter. The HDB has been suffering this price drop for about eight consecutive quarters already.
According to the CEO of PropNex Realty, this slide in the resale price is a mixture of the cooling measures implemented by the government and the 25-year term on the mortgage loans for the units sold by HDB. As a result, buyers can purchase a 2-room Build-to-Order unit even though it is located in non-mature estate. Aside from that, there is also a 3-year waiting period for houses that have PR status before the buyer can get an HDB flat up for resale.
In the same interview, Mohamed Ismail also said that the cooling measures implemented in Singapore was the most effective exercise that prevented the HDB resale prices from skyrocketing. The CEO also mentioned that despite the downfall, it is good to know that the second quarter only had a very small decline compared to the last consecutive quarters.
And since the market for HDB resale flats is becoming more stable, the supply for the Build-to-Order units will soon decrease to 15,000 only for the year 2015, said the HDB. Moreover, to make sure that there will be enough supply of non-landed flats in the country, there will also be more than 9,000 flats that will soon become available through the implementation of the Sale of Balance Flats (SBF).
Because of the abundance of both non-landed and landed properties come 2016, Mohamed Ismail also expects that there will be a bigger decline in the HDB resale prices before 2015 ends. He estimated that the volume of flats would reach as much as 19,000 up to 20,000 HDB flat units will be sold because of the weakening of the units’ asking prices.
**The High Park Residences Showflat has been opened for buyers to view. Please feel free to contact us at 61001778 if you would like to find out on the development priced from S$3xxK. The Adana at Thomson will soon be opened for interested buyers to view as well. Please register with us if you are keen to receive updated information from us. The other new developments, which are currently opened for sale includes: Botanique at Bartley, North Park Residences and Whitley Residences.