Resale and rental volumes of Housing Board flats fell in the first quarter of this year amid the ongoing coronavirus outbreak.
Data provided by HDB yesterday showed that resale flat transactions fell from 6,339 in the last quarter of last year to 5,893 in the first three months of this year - a 7 per cent drop.
Fewer three-room, four-room, five-room and executive resale flats were sold, although sales of one-room and two-room flats saw modest increase. The first-quarter volume, however, is still 21.9 per cent higher compared with the first quarter of last year.
Meanwhile, prices of resale flats remained stagnant. HDB data showed that five-room flats in Queenstown recorded the highest median resale price at $852,500, followed by flats in Bukit Merah at $817,500 and flats in Clementi at $815,000.
Ms Christine Sun, head of research and consultancy at Orange Tee & Tie, said the decline in resale volume could be due to the circuit breaker measures that caused house viewings to be discontinued.
Buying sentiment may also have been weakened by the economic uncertainties brought about by the Covid-19 pandemic.
But resale prices held steady, she pointed out, continuing a five-year trend of price changes fluctuating within a narrow band of between minus 1 per cent and 1 per cent.
ERA Realty head of research and consultancy Nicholas Mak noted that the property market was still positive in the first two months of the year but the rapid and unexpected global spread of Covid-19 last month wiped out earlier gains.
The latest figures also show that HDB approved 4 per cent fewer applications to rent out flats in the first quarter of the year.
Ms Sun said: "Some could be staying in their own flats in the light of the circuit breaker measures while others may choose to lease their flats only after the pandemic subsides so as to avoid a potential virus spread in their units."
Mr Mak agreed, observing that rental transactions failed to increase despite the Malaysian lockdown that left many Malaysians working or studying here rushing to find accommodation.
His forecast for the second quarter was grim. "We can almost write off the second quarter due to the eight-week circuit breaker period. The HDB resale volume in the second quarter could drop to less than half of the volume in Q1 2020," he said.
"However, it could bounce back once the circuit breaker period is lifted," he added.
Ms Sun is optimistic about the HDB resale market picking up after the outbreak is over.
Genuine buyers and those with urgent housing needs may return to the market when flat viewings resume after containment measures are eased, she said.
"The price affordability of HDB flats may be deemed attractive to some buyers, especially those who prefer a cheaper housing option or a smaller housing loan in the light of the current economic uncertainties."
