HDB resale flat prices dip 0.2% in Q2: Flash estimates

HDB will be offering about 3,300 Build-To-Order flats in Punggol and Tampines in August, and about 4,500 BTO flats in Ang Mo Kio, Tampines and Tengah in November.
HDB will be offering about 3,300 Build-To-Order flats in Punggol and Tampines in August, and about 4,500 BTO flats in Ang Mo Kio, Tampines and Tengah in November.PHOTO: ST FILE

SINGAPORE - Housing Board (HDB) resale flat prices dipped 0.2 per cent in the second quarter of this year compared with the quarter before, according to the latest HDB flash estimates released on Monday (July 1).

The resale price index was 130.8, down from 131 in the first quarter of the year.

The final figures, with more detailed public housing data, will be released on July 26.

The HDB will be offering about 3,300 Build-To-Order (BTO) flats in Punggol and Tampines in August, and about 4,500 BTO flats in Ang Mo Kio, Tampines and Tengah in November.

There will also be a concurrent Re-Offer of Balance Flats (ROF) exercise and Sale of Balance Flats exercise in August and November.

ROF flats that have not been selected are available for open booking by eligible home seekers throughout the year, the HDB said.  

OrangeTee & Tie's head of research and consultancy Christine Sun noted that the second quarter decline is at a marginally slower pace compared to the 0.3 per cent decrease in the previous quarter.

She said that while this is a fourth consecutive quarterly decline, prices have dipped only 0.7 per cent over the last year and have been fluctuating within a very narrow margin over the last 18 quarters, indicating that resale prices have stabilised.

"HDB resale prices have moderated as competition for buyers may have intensified with more HDB flats being placed in the resale market in recent months. Many HDB owners may be interested to upgrade their properties once their flats are eligible for resale, and a whopping 30,000 HDB flats will/ have reached their five-year minimum occupation period this year. 

"Prices may continue to stabilise after the government announced policy changes that allow buyers to use more Central Provident Fund monies to buy HDB flats. The changes may spur demand for some older flats."  

She said they expect HDB resale transactions to continue to rise this year while prices may face further downward pressure from the increasing flat supply in the coming months. 

More information on BTO flats and ROF flats are available on the HDB InfoWeb.