2017 was a mixed year for the Housing Development Board resale market with the number of resale transaction rising to 6.1% in comparison to the previous year, even as prices dropped.
The newest figures from the Board showed there were 22,077 resale transactions in 2017 while there were only 20,813 in 2016. The Housing Development Board also confirmed estimates for the year would be down 1.5%.
Experts believe that prices were forced down by numerous factors including the increase in housing grants, a shorter waiting period for the build to order units in some estates and the reselling of units previously picked up by other owners that are now back on the market.
The Minister of National Development stated that not all units will be chosen at the same time for redevelopment. Some units, when the leases run out, will be returned to the state. This, in turn, could drop the prices on older resale units.
Only a 0.2% decline in pricing happened in the last quarter of 2017 indicating that the market might be stabilizing.
The highest value in price for resale units in the last quarter of 2017 was $855,000 for 5-room units in Toa Payoh. Then followed by other 5-room units in Bishan going for $815,000. The lowest prices during the same period of time were $259,000 for 3-room units in Woodlands and $268,000 for 3-room units in both Yishun and Bukit Batok.
There was an increase of 5.6% in the number of rental applications that were approved during the last quarter of 2017 in comparison to the same time in 2016. There were 11,279 applications approved for renting out Housing Development Board units in the last quarter of 2017 which was up 5.4% from 10,698 in the third quarter.
Also, the last quarter of 2017 showed 53,750 units rented out which was an increase of 0.6% over the previous quarter than came in at 53,445.
The fourth quarter showed that $2,850 was the highest price for rental for five-room units in Bukit and Merah. This was followed by $2,800 for five-room units in Queenstown.
On the other hand, the lowest prices for rent in the fourth quarter were $1,400 for two-room units in Queenstown and three-room units in Woodlands.
BTO allocations of 3,600 residential units will be offered in February in areas such as, Geylang, Tampines, Woodlands and Geylang. It is believed there will be approximately 17,000 HDB units up for sale this year.
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