Oct 02, 2015

    Dip in HDB resale prices slowing down

    PRICES of resale Housing Board flats declined at a slower rate in the third quarter, in line with expectations that they are stabilising.

    Resale HDB flat prices dipped an estimated 0.3 per cent in the third quarter, compared with a 0.4 per cent decline in the second quarter, according to HDB flash estimates out yesterday.

    It was the ninth straight quarter of price decline and the slowest pace so far. However, downward pressures on prices still exist.

    Apart from cooling measures such as a lower mortgage servicing ratio cap still in place, some pressure will come from HDB upgraders who must sell their HDB flats after collecting keys to their new executive condos and HDB units - amid rising home completions, said Century 21 chief executive Ku Swee Yong.

    Resale flats will also face competition from upcoming HDB launches.

    Next month, HDB will offer about 7,000 Build-to-Order flats in Bidadari, Bukit Batok, Choa Chu Kang, Hougang, Punggol Northshore and Sengkang. About 5,000 flats will also be offered in a Sale of Balance Flats exercise.

    Meanwhile, private property prices fell about 1.3 per cent in the third quarter over the second quarter, according to flash estimates from the Urban Redevelopment Authority.

    This followed a 0.9 per cent decline in the second quarter and is the fastest pace of decline since the second quarter of 2009 amid the global financial crisis.

    Private home prices have fallen for eight straight quarters and are down 8 per cent from their last peak in the third quarter of 2013.