HDB resale prices rise 0.1% after four quarters of decline

Housing Board resale prices rose 0.1 per cent in the third quarter from the quarter before, according to the latest HDB flash estimates released yesterday.

The resale price index was 130.9, up from 130.8 in the second quarter.

It is the first increase after four consecutive quarters of decline.

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

Meanwhile, the HDB said it will offer about 4,500 Build-To-Order (BTO) flats in Ang Mo Kio, Tampines and Tengah next month.

In February next year, it will offer some 3,000 BTO flats in Sembawang and Toa Payoh.

Some flats are still available for open booking. Eligible flat buyers may apply online at HDB InfoWeb.

OrangeTee & Tie's head of research and consultancy Christine Sun noted that the uptick in HDB resale prices is the first since the second quarter of last year.

She said the price rebound is in line with expectations as market sentiment in the public housing segment has picked up significantly.

In recent months, the Government has announced a series of policy changes that include allowing buyers to use more of their Central Provident Fund monies to buy HDB flats, enhancing housing grants for first-time buyers and raising the income ceiling for eligible buyers.

Ms Sun said that the demand for resale flats is expected to continue to rise.

But she added that a dramatic price rebound in the next few months is unlikely as the supply of flats reaching their five-year minimum occupation period is expected to increase, putting more resale flats on the market.

Meanwhile, PropNex Realty chief executive Ismail Gafoor said resale prices are expected to remain flat for the rest of the year, but may increase next year because of a higher volume of transactions.

"With the recent initiatives introduced by the Government... we can expect to see a rejuvenation in the HDB resale segment paving the way towards positive growth in the coming quarters," he said.