http://www.straitstimes.com/archive/...south-20141205
HDB resale flat prices continue to head south
Prices fall across the board for 10th month; number of deals also down
Published on Dec 5, 2014 12:54 AM
By Janice Heng
THE public housing resale market stayed gloomy in November, with prices falling for the 10th month in a row.
Buyers' spirits seemed dampened during the monsoon chill, with the number of deals falling after having risen for two months.
The volume is expected to rebound next year, said analysts, as fewer new flats are launched. But for prices, the dreary showing is likely to continue.
Housing Board resale prices fell 0.8 per cent to hit a 40-month low last month, according to flash figures from the Singapore Real Estate Exchange (SRX) yesterday.
Updated figures also showed that an apparent glimmer of light in October was an illusion.
In SRX's initial figures for October, resale prices edged up 0.1 per cent after eight months of decline. But yesterday's update showed that prices actually fell 0.1 per cent that month.
This makes November's fall the 10th in a row.
Prices fell for all flat types, dipping 0.8 per cent, 1.2 per cent, 0.2 per cent and 2.2 per cent for three-, four- and five-room and executive flats respectively.
Apart from the traditionally slow year-end season, the slide in prices was to be expected as loan curbs continue to bite, said experts.
ERA Realty key executive officer Eugene Lim expects prices to decline by another 5 per cent to 8 per cent next year, if resale policies and loan criteria do not change. He is more optimistic about transactions.
This year may see a historic low of about 17,000 flats changing hands, but there may be "some rebound" next year, he said. This is thanks to fewer new flats next year and the continued stabilisation of resale prices.
There were 1,350 resale flats sold last month. This was down from 1,553 in October, but still more than the 1,212 units sold in November last year.
R'ST Research director Ong Kah Seng also expects transactions to "recover slightly next year, especially after the Chinese New Year".
But this may not translate to price gains, he added.
"Most buyers will be 'opportunity buyers' who will buy a flat after a long wait (and prices have fallen)."
Madam Linda Ang, 38, for instance, has heard from only "one or two" interested buyers in the last month.
"This whole year is quite stagnant, so I don't expect many calls," said the clerk, who is selling a four-roomer in Woodlands.
But she, too, expects things to pick up next year. "It can't be going down all the way."
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