http://www.businesstimes.com.sg/real...sale-price-dip

HDB flash data shows Q1 resale price dip

Consultants say prices are stabilising, given the quarter's 0.1% drop and the previous quarter's 0.1% rise

By Lee Meixian

[email protected]

@LeeMeixianBT

Apr 2, 2016


RESALE prices of public flats fell a marginal 0.1 per cent in the first quarter of this year, after rising 0.1 per cent in Q4 2015 - which, consultants say, shows resale prices stabilising overall.

This is according to flash estimates released by the Housing & Development Board (HDB) on Friday. The flash estimates include transactions in January, February and the first 21 days of March. More detailed public housing data for the full quarter will be released on April 22.

Lee Nai Jia, DTZ's regional head of South-east Asia research, noted that prices for resale HDB flats showed greater resilience than those for private homes, which fell 0.7 per cent in Q1.

"Prices for resale flats are supported by demand from buyers who need a home at short notice and prefer to stay near their parents," he said. "Demand for homes at choice locations in mature housing estates is expected to remain strong and is likely to resist any downward pressure from the slower economy."

Ismail Gafoor, PropNex Realty CEO, said that transactions in Q1 tend to be weaker due to the Chinese New Year holidays, and February being a shorter month. "Transactions are expected to gradually increase due to falling prices, which will slowly attract more buyers to pick up resale units. As such, we expect HDB resale prices to be flattish in 2016, with marginal price movements."

In addition, HDB will increase the Build-To-Order (BTO) flat supply, which will sap demand from the resale market, further stabilising prices, he said.

HDB will launch 18,000 new BTO flats in 2016, more than the 15,000 in 2015. In May, HDB will offer about 4,000 BTO flats and about 5,000 balance flats.

Mr Ismail expects resale prices to move between -1 per cent to 2 per cent in 2016, with volume exceeding 20,000 units due to lower asking prices. In 2015, the number of resale transactions rose 11.5 per cent to 19,306 units.

Ong Teck Hui, JLL's national director, research & consultancy, said that HDB prices are holding steady - that is, not falling further - augurs well for the private residential market, because HDB dwellers would be more assured of being able to fill the price gap between their current home and their next one.

"HDB residents would be more confident in purchasing private homes. Demand for private homes from HDB purchasers would mitigate their price declines, especially in the suburban market," he added.