HDB market stages price turnaround in 4Q2019, climbing 0.5%

By Timothy Tay/ EdgeProp Singapore|January 23, 2020 5:26 PM SGT

SINGAPORE (EDGEPROP) – HDB resale transactions rose 1.2% q-o-q in 4Q2019, from 6,264 transactions in the previous quarter to 6,339 transactions in 3Q2019. Compared to the same period a year ago, resale transactions last quarter are also 12.5% higher y-o-y.Last year also saw a recorded 23,714 resale HDB transactions, increasing 2.7% y-o-y. In 2018, there were 23,099 transactions.The HDB resale price index also climbed 0.5% q-o-q from 130.9 in 3Q2019 to 131.5 in 4Q2019, and over the entire year, the index registered an increase of 0.1% y-o-y.

According to Christine Sun, head of research and consultancy at OrangeTee & Tie: “The HDB resale market staged a surprising turnaround last year as prices of flats rebounded and sales volume rose higher last year.”This is in stark contrast to the preceding quarters where prices dipped consistently for 11 consecutive quarters since Q4 2016 to Q2 2019, she adds. Sun continues: “The cumulative effect of multiple policies seems effective in mitigating further price falls arising from the concerns surrounding the lease depreciation of older flats and the increasing supply of flats. A number of important changes were made last year such as allowing buyers greater flexibility in using CPF to buy older flats and enhancing the CPF Housing Grant to increase housing affordability for more Singaporeans.”

Last year also saw a recorded 23,714 resale HDB transactions, increasing 2.7% y-o-y. (Picture: Samuel Isaac Chua/The Edge Singapore)

Ismail Gafoor, CEO of PropNex Realty, continues: “We expect overall HDB resale demand to be propelled in 2020, with a projected 24,163 HDB flats reaching MOP and [on the back of] the enhanced housing grant announced in September last year.”

He says that the HDB resale volume could reach 25,000 resale deals while prices are expected to grow by 1% to 2% this year. The number of approved applications to rent out HDB flats also rose by 0.6% in 4Q2019, from 12,006 cases in 3Q2019 to 12,079 cases in the last quarter. The latest rental figure is also 5.2% higher y-o-y.

This year, HDB will launch 16,000 to 17,000 Build-To-Order (BTO) flats for sale. Its first BTO sales exercise for 2020 will occur next month and will comprise 3,000 BTO flats in Sembawang and Toa Payoh. In May, HDB also will offer 3,700 BTO flats in Chua Chu Kang, Pasir Ris, Tampines and Tengah. The flats in Chua Chu Kang are expected to have a shorter waiting time compared to some of the other BTO projects in the current line-up.

HDB has also announced that it will not have a Re-offer of Balance Flats exercise in February. It is reviewing its sales processes for balance flats and will provide an update in the future.

Original Article: https://www.edgeprop.sg/property-news/hdb-market-stages-price-turnaround-4q2019-climbing-05

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