Resale flat prices drop 1.3 per cent in second quarter

 An aerial view of HDB flats. Property prices have continued its decline in the second quarter of this year going by official estimates. -- PHOTO: ST FILE
 An aerial view of HDB flats. Property prices have continued its decline in the second quarter of this year going by official estimates. -- PHOTO: ST FILE

SINGAPORE - Property prices have continued its decline in the second quarter of this year going by official estimates.

Resale flat prices dipped for the fourth consecutive quarter according to flash figures released by the Housing Board on Tuesday.

The resale price index fell 1.3 per cent from April to June, slightly less than the 1.6 per cent drop in the preceding quarter.

The index, which measures the general price movements of resale flats, has been contracting since the end of 2012, which saw resale prices riding a bull run that started in the first quarter of 2009.

Analyst have attributed this to several factors, which includes a ramp-up of sale of new flats, loan curbs and a tighter resale process before a flat is sold.

According to HDB, it had offered more than 13,000 flats in the first quarter under both the Built-To-Order and balance flats schemes.

This month, some 3,810 BTO flats in Punggol, Sembawang, Toa Payoh, Woodlands and Yishun will be put up for sale.

Meanwhile, figures from the Urban Redevelopment Authority revealed that the private residential property index also fell 2.3 points, a 1.1 per cent decline on the back of a 1.3 per cent dip the previous quarter.

This is the third continuous quarterly drop, with properties in the core central region falling most at 1.5 per cent.

Analysts have noted that many investors remained cautious about the investment potential of private properties in general.