There was a 0.1% rise in HDB prices while private sector prices declined at a slow rate in the second quarter.
The prices of HDB remained flat while those of private homes had signs of approaching the bottom based on the flash estimates released yesterday.
The resale prices of HDB rose at 0.1% in the second quarter after a fall of 0.1% in the 1st quarter.
Private sector prices had a slowed decline after falling by 0.4%, lower than 0.7% fall recorded in the first quarter with high-end homes recording a recovery.
Overall, HDB resale prices are below their last peak by 9.8% while private homes prices have fallen by 9.4% since Q3 2013, a fall of 11 quarters running.
For private homes, this was the smallest price decline in a quarter since the start of price fall towards the end of 2013.
Ong Teck Hui, National research director JLL noted that the market might recover if the trend continues in the remaining part of the year. However, there may be risks caused by Brexit and other external factors that may occur.
Core Central Region private homes outperformed the suburbs with a rise of 0.2%, an increase in the second quarter. This was due to commendable sales at OUE Twin Peaks of 160 units at $2,588 psf after the deferred payment plan and Ardmore Three sale of 34 units at $3,179 based on the caveats.
However, the caveats on these projects do not capture discounts. For instance, Ardmore Three effective price after discount and ABSD rebate is approximately $2,700 psf.
Almost 100 units have been sold by CapitaLand at The Interlace and D’Leedon after the introduction of the deferred payment plan. These schemes by developers could help to sustain prices and volumes.
However, there was a reduction in the price of private apartments in OCR with a fall of 0.7% after a drop of 1.3% in Q1.
Alan Cheong, Research head Savills Singapore noted that the market might be slowly rising considering that this downturn has been longer at 11 quarters while the average down cycle has taken 8.4 quarters since 1975.
As government maintains cooling measures such as 30% cap on mortgage servicing, HDB prices may not change much, said Mohd Ismail, Chief executive PropNex Realty.
He added that pressure on prices would remain as HDB launches 18,000 build to order flats in 2016 in comparison to 15,000 flats in 2015.