How Has the HDB Resale Market in Singapore Fared in Recent Months?

How Has the HDB Resale Market in Singapore Fared in Recent Months?

Looking back in 2012, there has been a downward trend in terms of volume from the third quarter of 2012 onwards in Singapore. During the year 2013, there was a noted continued decline of the transaction volumes. One reason for this was the price that went up after nine months that the transaction volume increased. As the falling transaction volumes became quite evident, the price then declined as a response to the steady decreasing trend. There has been a 1.3% estimated decline of the resale prices as of the last quarter of 2013. Another factor said to affect the decline of transactions is the change of the Singaporean buyers’ behavior. They had been adopting a more cautious approach about the market.

The HDB resale market

The developers were beginning to cut the prices of the resale homes and condos when buyers prefer to buy new homes. For non-landed private homes, the resale prices fell 1.2% specifically during the months of September and October. This followed the revision of 0.9% slide in August and September. The downward trend of resale prices reflected the changing behavior of the buyers about prices and affected much the central region.

Some aspiring developers of new homes launched their new projects at a relatively cheaper price, such as the Sky Vue by the Capitaland or the Sky Habitat. This made buyers recalculate resale prices to at least 20% cheaper of the new home prices. The market is anticipated to become more weak in the coming months as the developers were introducing new homes at a cheaper price in an attempt to move units.

A tough year for the Singapore housing market

After enjoying a long period of highs, the Singapore suburban mass market home prices experienced a 0.7% drop in December 2013. Some speculators treat this as a warning in relation to the market price trend in the next few years. Newly launched properties are coming into the market with much lower price tags that the resale market may find the need to lower their prices as well in order to attract buyers. The largest decline came from the suburban segment. The newly launched properties and the newly implemented loan restrictions greatly influenced the choices and the capacity of the market.

The resale market in 2014

This year is said to be a quiet one with the fewest deals seen by the housing board analyst. However, they are expecting the change in the prices to entice buyers, especially the cash premiums later this year. As the cash over valuation continues to moderate, the buyers may be enticed to buy the HDB resale flats instead of the new flats. There is a need to review the terms of the resale flats as the first time buyers are finding it easier to purchase new ones than resale.

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