Pricies of HDB seems to be stablising and seems to continue in the months ahead, based on Straits Times article on 10 June 2016.
While there is a marginal dip of 0.1% in March and April respectively, HDB prices look to be solid and stable. Price increase was due to prices of three-room and five-room flat, both of which increased by 0.7%, whereas prices of executive flats went up marginally by 0.4% and four-room flats lowered by 0.7%.
Some real estate experts indicated that the property cooling measures are effective in getting the resale flat prices to be stable and expectations between buyers and sellers are getting realistic. Some buyers have been enticed by the price stablility.
Based on the article:
‘While overall HDB resale prices have largely stayed flat in the past year, they have dropped 10.9 per cent since peaking in April 2013.
The number of flats that switched hands went virtually unchanged last month, after a 10.3 per cent spike in April. There were 1,826 resale units, comparable with the 1,828 units transacted in April.
Still, this volume is 15.9 per cent higher than the 1,575 units resold in May last year.
Compared with the peak of 3,649 units in May 2010, however, resale volume last month was still down by about half.’
One observation indicated that the transactions are done because the buyers jumped in because of the reasonable price. Essentially, price increase was not because of the increase in demand.
Sellers raised prices marginally but they faced resistance from the buyers, so resale volume in May was comparably to that in the month of April.