HDB flat resale prices down 1.5% in 2015

Resale prices for flats fell 1.5 per cent for the whole of 2015, despite rising marginally in the fourth quarter, according to flash estimates released by the Housing and Development Board (HDB) on Monday (Jan 4).

The Resale Price Index (RPI) for the fourth quarter came in at 134.9, up 0.2 per cent from the previous quarter, HDB said. The index provides information on the general price movements in the resale public housing market.

The HDB plans to launch about 18,000 flats this year, an increase of about 3,000 units from the 15,100 units in 2015, to meet the “expected demand due to recent policy changes”. The first Build-To-Order (BTO) exercise will be held in February, where 4,150 BTO units in Bidadari, Bukit Batok and Sengkang will be offered, HDB added.

The launch, which could sap some of the demand for resale flats, is one of the reasons analysts said they were cautious in declaring a recovery in the HDB market despite Q4’s slight increase.

Said Mr Nicholas Mak, executive director for research and consultancy at SLP International: “I think we need to see two or more consecutive quarters of increase in the price index, before we can confirm that the HDB market has truly turned the corner. There will still be downward pressure.

“However, the HDB resale flat prices are approaching the bottom of the cycle, so there is a possibility that there could be a very gradual price increase, but that also depends on other macro factors such as Singapore’s economic growth,” he added.

Source : Channel NewsAsia – 4 Jan 2016

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