Prices of resale flats fell by 1.6 percent in Q3 2014 to 192.5 points, the lowest level in two years, revealed flash estimates from the housing board.
This is the fifth consecutive quarter of decline. For the first three quarters of 2014, HDB resale prices fell 4.6 percent.
According to Mohamed Ismail, CEO at PropNex Realty, the slew of property cooling measures is continuing to dampen demand for resale flats, which in turn is pushing down prices.
These include the reduced Mortgage Servicing Ratio (MSR) cap of 30 percent and the maximum loan term of 25 years for HDB mortgage loans, three-year wait for new PRs before they can purchase resale HDB flats, and singles being allowed to buy two-room BTO flats in non-mature estates.
“HDB’s change to the valuation procedure has also created a more cautious approach from buyers, as they are more careful when giving an offer for a particular flat,” said Ismail.
For the whole of 2014, Ismail expects resale flat prices to drop by six to seven percent and transactions to hit around 17,000 units, the lowest number in a decade.
More detailed public housing data will be published on 24 October.
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
