PUBLISHED Thursday, March 30, 2017
The slight drop in prices came after five consecutive quarters of negligible price trend; it was likewise the most elevated price drop in the last seven quarters, predominantly on the grounds that the rate of price decline has begun to fundamentally moderate since the begin of Q1 2015.
Experts attribute fall to traditionally quieter Q1 due to Chinese New Year and February being a shorter month.
“Such a price decline can also be attributed to the steady supply of the HDB build-to-order (BTO) flats expected in 2017.” said Nicholas Mak, executive director at SLP International.
“Although the HDB resale price index signalled that the market has largely stabilised, the government is not planning to reduce the supply of BTO flats for 2017. Hence, this could have drawn some demand from the HDB resale market and contributed to the price weakness.”
Ong Kah Seng, director of R’ST Research, additionally credited it to flat sellers willingly to acknowledge a bigger price cut to rapidly offload their unsold flat, with the goal that they can move into their recently finished BTO flat or executive condominium.
The 0.6 per cent price drop divided the consultants into two group: the individuals who trust that the larger than-anticipated decrease was only a blip, and price would continue to stabilise; and the individuals who read it as a sign that price may additionally drop further, regardless of the possibility that just marginally.
Those in the primary group cite factors refer to variables, for example, higher housing grants for the purchase of resale public housing announced in this year’s budget that would help support market demand.
Source: http://www.businesstimes.com.sg/real-estate/hdb-resale-prices-surprise-with-06-slide-in-q1
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