HDB resale prices to hold up, says experts

Prices of HDB resale flats are expected to hold up as supply is tight but sales volumes could soften as buyers assess their options in the light of new cooling measures.

Analysts say a stand-off between buyers and sellers is likely over the coming weeks as the stamp duty rules sink in.They believe most buyers will take a wait-and-see attitude, with some holding off purchasing a resale flat.

HDB resale prices rose 3.8% to a record in the three months to September 2011 and are now 35% higher than in the fourth quarter of 2009 – the last time prices fell. Resale prices then dipped just 0.8% before rebounding and heading north again.

But while HDB resale prices are correlated to how values move in the private mass market, they are likely to be more insulated from the stamp duty measures as many buyers, unlike in the private market, are first-timers and owner-occupiers rather than investors or foreigners.

Furthermore, HDB flats owners also need to fulfil their minimum occupation period which will prevent wild volatity in prices for the public housing.


10 Dec 2011