Resale prices for Singapore HDB fall 0.3 percent in September 2017 based on a month to month comparison, reversing a 0.2 percent gain in August 2017. Based on these flash estimates figures by SRX Property, there was a 14 percent decrease in the number of HDB units transacted at 1683 in September 2017 from its previous month. This could be due to the Chinese 7th month where transactions tend to be lower than other months of the year.
For the third quarter for 2017, HDB resale prices have declined by 0.6 percent compared to previous quarter.
The continued supply of new BTO flats by HDB has dampered demand for resale HDB. Total BTO flat supply for 2017 is expected to peak at 17,500 new units. Analysts are expecting an overall price decline of around -1 to -1.5 percent for 2017.
Current homeowners who are selling their HDB may be required to lower their expectations and increase marketing efforts to achieve the best possible transacted price. Calibrating a right timing to sell and move on is of importance as most homeowners are selling due to home upgrading and collection of keys to their new BTO or EC.
During Budget 2017, the government announced the increase of CPF housing grants for resale flats. Eligible buyers can now apply for subsidies of up to $50,000 for four room or smaller HDB resale flats. Coupled with other additional CPF housing grants, prospective resale buyers can get up to $110,000 subjected to conditions.
CBP are expecting HDB prices to decline slightly in 2017 due to impending increase in HDB BTO supply in November 2017. We could be looking at an overall reversal in HDB resale prices in 2018 and increase in transaction volumes as more BTOs and ECs purchased by HDB upgraders are completed in 2018.
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