HDB flash estimate for resale price index slips 0.6% q-o-q in Q3

THE Housing & Development Board's (HDB) flash estimate for the third quarter shows that its resale price index slipped 0.6 per cent over the second quarter.

This follows a 0.1 per cent quarter-on-quarter drop in Q2 2017.

Year on year, the Q3 2017 index is down 1.3 per cent.

The resale price index provides information on the general price movements in the resale public housing market. The transacted prices of individual flats (by block and flat type) can be found via the e-services available on HDB's InfoWEB.

The resale price index for the full third quarter, together with more detailed public housing data, will be released on Oct 27, the HDB said on Monday morning.

The HDB also said that it will offer about 4,800 Build-To-Order (BTO) flats in Geylang, Punggol, Sengkang and Tampines in the November 2017 BTO exercise. This will bring the total BTO flat supply for 2017 to about 17,500 units. More information on the BTO flats is available on the HDB InfoWEB.

There will also be a concurrent Sale of Balance Flats (SBF) exercise.

Edmund Tie & Company head of research Lee Nai Jia commented that after showing signs of stabilising in 2016, the decline in HDB's resale price index has gained speed - in contrast to the private home price index.

"From the ground, we have received feedback that the number of enquiries for older HDB flats in the resale market has also fallen, and the time needed to sell a unit is longer unless the seller is willing to lower the price. This is especially so for flats with a remaining tenure of less than 60 years.

Some potential buyers are concerned that the value of older HDB resale flats would decline five years down the road when they have fulfilled the minimum occupation period (MOP) and may want to sell their flat and upgrade to a private condo for instance.

"However, the prices of newer flats bought directly from the HDB and the lessees for which have just met the five-year MOP remain well supported, as buyers are still comfortable with the long lease remaining," said Dr Lee.