HDB resale prices rise by 0.7% last month, reversing June's slight fall

HDB prices rose by a marginal 0.7 per cent last month, a reversal of June's 0.6 per cent fall.
HDB prices rose by a marginal 0.7 per cent last month, a reversal of June's 0.6 per cent fall.PHOTO: ST FILE

The public housing resale market has continued on its long stabilisation path, with prices rising by a marginal 0.7 per cent last month, a reversal of June's 0.6 per cent fall, according to SRX Property flash figures yesterday.

However, the number of deals fell 13.7 per cent from the month before.

Prices rose across most flat types, with an increase of 0.6 per cent for three-roomers, 0.3 per cent for four-roomers and 0.5 per cent for five-roomers. But executive flat prices edged down 0.4 per cent.

The overall price rise was also seen in both mature and non-mature estates, with increases of 0.8 per cent and 0.6 per cent respectively.

The minor uptick should be seen as part of the market's continued stability and not the start of a trend, said experts. "Buying interest for HDB resale flats has definitely stabilised and reached an equilibrium point," said R'ST Research director Ong Kah Seng.

The last time that monthly HDB resale prices rose or fell by more than 1 per cent was in August 2014, when they fell 1.1 per cent.

Unlike prices, resale volumes have been less stable. Last month, 1,573 flats changed hands, down from 1,823 in June. Nevertheless, this was comparable to the 1,552 flats resold in July last year.

The fall in volume suggests that flat owners are resisting overly low offers from buyers, said Mr Ong.

"Opportunity buyers" who are in the market precisely because of low prices form the bulk of buyers today, he added.

Looking ahead, experts agree that the market's price stability is likely to continue.

But volumes may fall again this month due to the Hungry Ghost Festival which traditionally sees fewer deals, said Century21 chief executive officer Ku Swee Yong.

This month will also see the launch of new flats by the Housing Board, which could decrease resale demand.

About 4,800 Build-To-Order flats will be on offer in the non-mature towns of Hougang, Sembawang and Yishun, and the mature town of Tampines.

A version of this article appeared in the print edition of The Straits Times on August 05, 2016, with the headline 'HDB resale prices rise by 0.7% last month, reversing June's slight fall'. Print Edition | Subscribe