HDB Resale Prices Up

SINGAPORE — Resale prices for Housing and Development Board (HDB) flats gained 0.1 per cent in the three months to December, marking the first increase since the third quarter of 2013.

Overall, HDB resale prices for 2015 declined 1.6 per cent, the HDB said in a press release today (Jan 22). This is in contrast to 2014, when prices fell by 6.2 per cent. The data released today is largely in line with the flash estimates released earlier this month. Upcoming executive condo include The Visionaire EC , Wandervale EC and Parc Life EC while existing ones include The Terrace EC, Waterwoods EC, Signature at Yishun and Brownstone EC.

In terms of transactions, a total of 19,306 units changed hands last year, up by 11.5 per cent compared to 2014. In the fourth quarter of 2015, there were 4,992 resale transactions, up by 2 per cent from the third quarter.

As for HDB rentals, the median subletting rents for five-room units in various towns in the fourth quarter ranged from S$2,000 in Bukit Panjang to S$3,100 in Bukit Merah and Queenstown.

The number of applications approved for subletting of HDB flats increased by 6 per cent to 10,618 cases in the fourth quarter. As of Dec 31, 2015, 50,264 HDB flats were sublet, up 0.9 per cent from the third quarter.

This year, HDB plans to launch four Build-To-Order exercises, with a total BTO supply of some 18,000 flats across various locations.

The first BTO exercise will be held next month where about 4,150 flats in Bidadari, Bukit Batok and Sengkang will be offered.

Commenting on the prices, ERA’s Key Executive Officer Eugene Lim said; “This increased price stability could be pointing to a new equilibrium, indicating that the market may have found its support level.”

He noted that resale prices for some HDB flats hit record levels last year — a five-room unit at Pinnacle @ Duxton changed hands for S$1.088 million.

“Certain choice units will continue to attract high prices due to their unique attributes. However, these remain the minority. The majority of resale flats transacted are at very stable prices that are supported by valuation,” he said.

Mr Lim added that ERA expects a gradual decline in prices in 2016, probably around 1 per cent to 3 per cent.

He added that while there will be more headwinds facing the property market this year, such as the increase in interest rates and slowdown of the Singapore economy, it remains to be seen how large an impact these factors will have on the HDB resale market.

executive condo and the land site pic 4