HDB resale transactions up 6.1% in 2017, price index down 1.5%

/ EdgeProp
January 26, 2018 2:47 PM SGT
[Updated: 18:10, Jan 26 2018, to include comments from property consultants]
The number of HDB resale transactions last year totalled 22,077 units, a 6.1% increase compared to 20,813 units last year. Meanwhile, the HDB resale price index fell 1.5% for the whole of 2017. “This comes as a surprise, given that HDB resale prices decreased by a mere 0.1% in 2016,” says Eugene Lim, key executive officer of ERA Realty Network.
HDB announced that 17,000 new flats will be launched for sale this year. The first Build-To-Order exercise in February will offer 3,600 flats in Chua Chu Kang, Geylang, Tampines, and Woodlands. A concurrent Re-Offer of Balance Flats (RBF) exercise will also be held.
The RBF scheme and shorter waiting time for Build-To-Order (BTO) flats could have diverted some demand away from the resale market, notes ERA’s Lim. This is because HDB is offering new and cheaper flats (relative to resale flats) with a shorter waiting time.
“Nonetheless, resale flats remain the only way for buyers to pick a flat in a location of choice, and unlike BTO flats, the eligibility conditions are far less stringent; especially if the buyer is not applying for CPF Housing Grants; or not taking a home loan through the HDB,” adds Lim. The introduction of the HDB Resale Portal -- which will halve the transaction processing time for resale HDB flats from 16 to 8 weeks – is expected to lead to more resale HDB transactions in 2018.
ERA’s forecast is that resale transactions for 2018 will be between 22,000 to 24,000 units, a slight increase from this year’s 22,077 units.