HDB resale prices to fall 5-8%

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Resale prices of HDB flats could dip within five to eight percent for the entire year, according to ERA’s projections reported in the media. But it is optimistic that there could be a resurgence in first-time buyers as prices moderate.

“As prices stabilise some more, and are well supported by valuations, we may see the return of more first-timers to the resale market, especially those who do not want to wait the three years for their BTO flats,” said the property consultancy.

ERA’s forecasts follows reports that HDB resale prices slid by 0.2 percent in April over the previous month based on data compiled by a property listing portal.

Four-room units saw the largest drop of 0.8 percent, followed by five-room flats (0.4 percent) and three-room units (0.2 percent). Nonetheless, prices of executive condominiums (ECs) climbed 1.2 percent. On an annual basis, resale prices sank five percent last month.

In terms of resale volume, transactions rose to 1,484 units in April from 1,422 units in March, but this is still a far cry from the 1,733 units sold a year ago.

There were also about 1,653 HDB flats leased last month compared to 1,718 units in March and the 1,746 units rented out in April 2013.

On a monthly basis, overall rental prices declined by 1.1 percent in April led by three-and four-room flats, where values fell by 2.9 and 1.8 percent respectively. Nevertheless, five-rooom units saw an uptick of 0.4 percent in rental prices, while that for ECs increased by 3.2 percent. However, values dropped 2.3 percent on a yearly basis.





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