HDB resale flat prices slip 0.2% in Q4, drop 0.9% for whole of 2018: Flash estimates

HDB flats opposite 600 Sin Ming Avenue. For the whole of 2018, HDB resale prices dipped 0.9 per cent over 2017.
HDB flats opposite 600 Sin Ming Avenue. For the whole of 2018, HDB resale prices dipped 0.9 per cent over 2017.PHOTO: ST FILE

SINGAPORE - Housing Board resale flat prices fell slightly by 0.2 per cent in the fourth quarter of 2018 compared with the quarter before, according to the latest HDB flash estimates.

Resale flat prices also dropped 0.9 per cent in the fourth quarter from a year ago.

For the whole of 2018, HDB resale prices dipped 0.9 per cent over 2017, said the HDB on Wednesday (Jan 2).

The final figures, with more detailed public housing data, will be released on Jan 25.

OrangeTee & Tie's head of research Christine Sun said HDB flat prices saw a faster decline in the fourth quarter of 2018, as market sentiment was affected by property cooling measures and concerns over the depreciating value of older flats.

She also attributed the dip in prices to an increased supply of HDB flats entering the resale market after reaching the minimum occupation period (MOP).

"The decline in overall prices had been moderate, as there have been more non-standard flats reaching MOP and being sold at relatively attractive prices in recent months," she said.

Some of these flats include executive apartments, terrace houses, units built under the Design, Build and Sell Scheme and flats at Pinnacle @ Duxton, she noted.

Looking ahead, PropNex Realty chief executive Ismail Gafoor expects resale prices to increase by 1 to 2 per cent in 2019, due to more en bloc sellers entering the HDB resale market to look for replacement homes.

Ms Sun said there will be more HDB resale flats reaching the MOP in 2019, which in turn could push resale prices down. But this could be countered by fewer Build-To-Order flats being launched in 2019, and the Government possibly allowing buyers to use more of their Central Provident Fund monies to buy older flats.

She thus expects resale prices to hover between zero and -2 per cent for the whole of this year.

The HDB will launch about 15,000 new flats for sale in 2019, down from about 17,000 in 2018.

In the first BTO exercise in February, the HDB will offer about 3,100 flats in Jurong West, Kallang/Whampoa and Sengkang.

There will be a Re-Offer of Balance Flats exercise held as well.