HDB resale prices slip 0.7% in Q3

Supply is increasing, but homeowners are looking to upgrade to private properties.

The Resale Price Index (RPI) for HDB flats fell by 0.7% QoQ, from 133.7 in Q2 to 132.8 in Q3.

According to HDB data, resale transactions fell by 3.2% QoQ, from 6,001 cases to 5,808 cases. Resale transactions were 5.3% higher YoY.

PropNex Realty chief executive officer Ismail Gafoor commented, "The current low price points will attract more to consider the resale segment, especially for young buyers and upgraders."

Gafoor also said prices are expected to fall by 1.5-2% by the end of the year due to the HDB resale supply increasing at the same time as the number of owners looking to upgrade to Executive Condominiums (ECs) and private properties.

HDB also said it will offer about 4,800 Build-To-Order (BTO) flats in Geylang, Punggol, Sengkang and Tampines in the November 2017 BTO exercise.

This will bring the total BTO flat supply for 2017 to about 17,500 units.