Public housing prices fell slightly in Q1 2016 after rising in the previous quarter.
Resale prices of HDB flats dipped by 0.1 percent quarter-on-quarter in Q1 2016, according to flash estimates from the Housing Board on Friday (1 April).
Although this is a reversal of the 0.1 percent gain in the previous quarter, this is a slower rate of decline than the respective 1.0 percent, 0.4 percent and 0.3 percent dips in the first three quarters of 2015.
The data is preliminary and the final statistics will be made available on 22 April, said the HDB.
Mohamed Ismail, CEO of PropNex Realty, expects HDB resale prices to remain flat in 2016.
“The government will maintain measures to stabilise the public housing market, such as the Mortgage Servicing Ratio (MSR) cap of 30 percent and the maximum loan term of 25 years for HDB mortgage loans, (the) three-year wait for new PRs before they can buy resale HDB flats, and allowing singles to buy 2-room Build-To-Order (BTO) flats in non-mature estates.”
Source: HDB
Meanwhile, PropertyGuru’s latest Property Outlook Report revealed that HDB resale flat prices are unlikely to fall by more than one percent for the whole of 2016.
But prices of resale flats located in mature estates are likely to hold firm this year, and may even see an increase, but overall transaction levels are expected to remain flat on an annual basis.
In addition, the HDB announced plans to launch around 4,000 BTO flats in May, and about 5,000 balance flats from previous sales exercises.
“HDB will launch 18,000 new flats in 2016 – more than the 15,000 launched last year – which will sap demand from the resale market, thereby stabilising prices,” noted Ismail.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
