Resale HDB flat prices down 0.1%

March saw a very slight 0.1 per cent fall in prices for the resale HDB flat market, mainly for 3-room and 4-room flats. This is following a 0.2 per cent rise in February and a year of stagnant prices.

Analysts are not expecting resale flat prices to go anywhere anytime soon as the slowing economy and continued property cooling curbs continue. Buyers seem to be favouring slightly smaller 4-room flats over 5-room units and any spike in the price index could be occasional and non-indicative of the overall market outlook.

21c0a7bf81e440299d0bd4b956642daaResale flats in mature estates have always been  popular with buyers, but even this market segment has been hampered by global and local uncertainties. There is good news however. Sales volume of resale HDB flats have risen in March despite the fall in prices. There were 451 more units sold in March than the 1,200 in February. The launch of new BTO (build-to-order) flats in February may have also taken some attention away from the resale market, though the latter will always find a place in the consumers’ radar as some buyers may not be willing or able to wait for new flats to be built or they may prefer living in locations other than those in which new flats are being launched or built.

Property DIY – Buy and sell Resale HDB flat on your own

Ready and planning to buy or sell your HDB flat? Finding a good agent is the next big step, and an important one. But if you have the energy and time to do it yourself, the option and resources are available.

Queenstown-HDB
HDB regularly runs resale seminars in English, Mandarin, Malay and Tamil to educate buyers and sellers about the resale process. On their website, they have a clearly mapped out 9-step process complete with links to resources. Sellers could also do the marketing and selling of the flat themselves but engage an agent only to assist with the paperwork.

The entire resale transaction, minus the open houses and home viewings, commonly takes between 6 to 8 weeks. Before all that, sellers and buyers are advised to check their eligibility to sell or buy a flat, plan their finances and either approach banks or apply for a HLE (HDB loan eligibility) letter before looking for a flat. HDB also has an online tool that helps you compute a rough estimate of your loan type and amount.

HDB websiteUpon finding a flat you wish to purchase or when someone is ready to purchase your flat, the seller will then need to grant the buyer an OTP (option to purchase) which costs up to $1,000 and the ball is then in the buyer’s court whether or not to exercise the option within 21 days. If the buyer wishes to purchase the flat, both parties are required to submit resale applications via HDB’s e-Resale service. There are additional legal, administrative, insurance and valuation fees to consider in the entire process. Agent or DIY, having a firm idea of what is required will only be helpful in making the entire resale flat search and purchase process a smoother one.

 

Price drop in City fringe and Suburban properties

The global economic slowdown may have affected industries all around, as salaried employees whose jobs may even be in danger are now more prudent with their spendings. As these are the main target audience for suburban and city-fringe properties, these market sectors are a little worse for wear and both sales and rental prices have fallen.

A typical 3-bedder outside the central region may have fetch $3,800 in monthly rent a year ago, but now the going prices are hovering around $3,200. Competition in the resale market may also rise this year as investors who have purchase properties in 2011 will now be clear of stamp duties and may be putting their units into the market by the middle of this year.

Corals @ Keppel BayPhoto: Corals @ Keppel Bay

Luxury homes and central region properties may fare a little better, though resale private apartment prices have dropped 0.3 per cent in February this year. Most of the buyers of these high-end properties are high-net-worth individuals or funds who are capable of holding on to their properties through market troughs. Foreigners also make up a large proportion of the buyers here, with Malaysians, Indonesians and Chinese forming majority of the group. As Singapore’s luxury properties are still considered value-buys in comparison with the other popular Asian city, Hong Kong, where prices are 30 per cent higher and most properties are leasehold, those with the cash will continue to pick up deals, more of which are to be had this year as developers begin to offload their unsold stock.

Resale HDB flat prices up again

HDB resale flat prices have risen for 2 consecutive months this year, with a 0.2% rise in February. More than a distinctive market rebound, property analysts are embracing the slight adjustments as a sign of market stabilisation.

JurongEast HDB FlatIn fact, the market has been stable for the past year and a half, with less than 1 per cent fluctuation. It is still however, the buyers’ market. The number of resale HDB flat transactions have fallen, which could mean that demand is slowly waning, and the price point may be what the buyers are focused on. With the transparency of transaction data and statistics, more options made available such as singles now being able to apply for 2-room flats directly from HDB, and the injection of 9,000 new BTO flats into mature estates this year, buyers are more savvy and will only take the bait if the deal is truly good.

1,200 resale flats exchanged hands last month, down from 1,286 in January but still up from 1,148 last year though the lull could have been due to the year-end festivities. Industry experts are expecting resale HDB flat prices to remain flat this year, with an increase of transactions up to July when a fall in activity is expected during the Hungry Ghost Festival month.

Post lunar new year property market – What to expect?

The first half of February might have been duller for the property market, as expected what with the calendar year just beginning and preparations for the Lunar new year in the way. But now that festivities are almost over, what can we expect for the rest of the year?

South BeachPhoto: South Beach Residences

Property analysts are predicting a year of stabilisation for the market, with most of the worst almost over, though it may be too soon to expect a market recovery. January’s slight rise in resale private property prices and 2015’s increase in transaction volume may boost market sentiments.

They are however expecting the HDB resale market to fare better compared to their privately-owned counterparts. As the volume of these public housing are closely monitored by the government and are often considered the minimal living requirement (aside from those in the rental market), resale HDB flats will find potential buyers, though the wait may be longer than before. Resale flats with low or no COV (cash-over-valuation) can now more readily find buyers. HDB resale flat prices have fallen only 1.5 per cent last year, compared to 3.7 in the private property market.

This year, sellers of properties near the newly-opened Downtown Line mrt stations can expect more interest while buyers seek or hold out for private property bargains in the market as developers try to sell off unsold stock. With a much-depressed luxury property sector, buyers would be wise to keep an eye out for good deals in the prime-districts and central regions in developments such as South Beach Residences, New Futura and Paterson Collection.

 

 

Mortgage cap continues to limit resale HDB flat market

One of the more impactful property cooling measures implemented in recent years have been the Total Debt Servicing Ratio (TDSR) framework and the mortgage servicing cap for HDB flats, which limits the percentage of one’s gross income which can be used to service a loan for a HDB flat to 30 per cent.

SengkangHDB

Resale flat prices have been deflating for 2 years now and looks like it will be flatlining this year. Since its peak in April 2013, resale HDB flat prices have fallen 11 per cent and many transactions are now closed sans Cash-over-valuation (COV). The second half of last year did however see a slight increase in prices. With the selling prices of recent transactions quite transparently and clearly reflected by HDB, buyers are now more aware of the current market climate.

The number of transactions in January fell 121 units from December, and prices fell 0.5 per cent. But this may be due to the busyness which January brings for buyers and sellers and property analysts are not overly worried about the HDB market as prices and sales volume are only expected to remain level this year. The stability may be a good thing this may be the much-needed rest period before a market rebound.

 

Resale HDB flat prices stabilising

HDB resale flat prices fell a mere 1.5% last year, buoyed by a 0.2% rise in the last quarter of 2015.

Skyline Bukit Batok HDB BTO FlatPhoto credit: HDB

With the lowered prices of resale HDB flats, there may be an increase in sales volume this year as buyers have found many of these sans-COV (cash over valuation) resale units more affordable. Price-wise, property experts are looking at a 1 – 2 per cent movement, with prices staying quite stagnant this year. More young couples and upgraders may also be moving into the private property market as the total quantum prices of units have come down to a much more palatable level.

According to Minister for National Development Lawrence Wong, resale flats are mostly selling at market value, with prices comparable to that of 2011. Some of the property cooling measures which have been implemented since that which have taken effect, and which may continue to do so include the mortgage servicing cap of 30 per cent, the 25-year maximum loan tenure limit, and a 3-year waiting period for permanent residents before they are allowed to purchase resale HDB flats. Demand may also have waned as singles are now able to purchase new 2-room BTO flats directly from HDB and 18,000 new flats are to be rolled out this year with the first launch in February.

Though this may point to the market bottoming out by end of 2015, two consecutive quarters of price increase is required before a clear sign of a market rebound can be confirmed.

Resale HDB flat prices expected to stablise

It seems like 2016 could be the year when things stand still. Good for some, and a little less ideal for others. But either ways, it may be a good time for the dust to settle, for the market to finally take stock of the property cooling measures and interest rate hikes, to balance the supply and demand scale, and for the authorities to closely monitor and plan their next steps.

HDB mature estatePhoto credit: Singapore Tourism Board

Prices of resale HDB flats have stayed the same last November and December, perhaps signalling a stabilisation of the market. There was a slight 0.3 per cent and 0.1 per cent rise for 3- and 4-room flats, but a drop of 0.4 per cent for 5-room flats and ECs (executive condominiums). Flats in mature estates are still in demand, with a 0.2 per cent rise in prices, though in comparison, prices fell the same percentage in non-mature estates.

It has taken resale HDB flat prices some time to fall a narrow margin, thus a soft landing could be said to have been achieved considering last year only saw a 1.3 per cent drop in price index. Property experts are expecting prices to hold at their current level for the rest of the year despite HDB’s announcement of their intended launch of 18,000 new BTO flats this year, as the target audience for both flat types are different, with those searching within the resale HDB market most likely requiring a HDB flat in the short term. New flats typically require 3 to 6 years to build.