HDB resale prices fell 0.3 per cent in January compared to December, while transactions fell 13.9 per cent to about 1,174 flats resold, according to data from SRX Property released on Thursday.
Consultants called the drop a blip and believe that prices of HDB resale flats are still continuing to stabilise. As for the double-digit drop in transaction volume, it could be due to the large supply of build-to-order (BTO) flats released for application in the new-sale market in November, they said.
R’ST Research director Ong Kah Seng said: “This might have drawn some interest away from the resale market in January because some buyers who participated in November’s balloting and were successfully allocated an appointment could have gone to do their selection in January.”
In January, HDB resale prices in mature estates fell by 0.7 per cent, while those in non-mature estates remained the same.
Mr Ong noted that HDB’s bumper crop had also included new flats in Bidadari and Kallang, which could have drawn away some buyers looking for resale flats in mature estates. This could have also affected prices of resale flats in mature estates in January.
Comparing flat sizes, resale prices were dragged down by HDB three- and four-room flats, which saw unit resale prices fall 0.6 per cent and 0.5 per cent, respectively. This was partially offset by resale prices of five-room and executive flats which rose 0.4 per cent and 0.9 per cent, respectively.
According to the SRX Property Price Index for HDB Resale, prices have decreased by 0.1 per cent from Jan 2016, and declined 11.2 per cent since the peak in April 2013.
On the transactions front, year-on-year, resale volume decreased by 8.9 per cent compared to 1,289 units resold in Jan 2016. Resale volume was down by 67.8 per cent from its peak of 3,649 units in May 2010.
Mr Ong expects resale prices to stay flat in 2017 should the property cooling measures remain in place.
As for mature estate flats, which tend to enjoy more resilient pricing, their prices could rise by up to 0.2 per cent in 2017, and prices in non-mature estates could fall by up to 0.15 per cent instead.