Despite the on-going economic recession, prices of HDB resale flats have continued to rise in the last six months, hitting the all-time high in November 2008.
According to flash estimates of HDB's Resale Price Index released on 2 January 2009, prices of flats in the fourth quarter (Q4) of 2008 rose 1.5% over the preceding quarter.
However, the quantum of the growth in Q4 was smaller than in Q3 2008 which registered a much stronger 4.2% price rise. It was also the first time price growth has dipped below 3% in six months. This may be a sign of things to come.
For a start, the market sentiment has changed from ‘highly optimistic’ to one of cautiousness and more prospective buyers are sitting on the fence. It may become a self-fulfilling prophecy for the many buyers who remain passive in waiting. The overall prices of HDB resale flats may start to ease from the first quarter of 2009 onwards.
Experts expect the overall HDB resale prices to drop five to 10% in the full year.
According to flash estimates of HDB's Resale Price Index released on 2 January 2009, prices of flats in the fourth quarter (Q4) of 2008 rose 1.5% over the preceding quarter.
However, the quantum of the growth in Q4 was smaller than in Q3 2008 which registered a much stronger 4.2% price rise. It was also the first time price growth has dipped below 3% in six months. This may be a sign of things to come.
For a start, the market sentiment has changed from ‘highly optimistic’ to one of cautiousness and more prospective buyers are sitting on the fence. It may become a self-fulfilling prophecy for the many buyers who remain passive in waiting. The overall prices of HDB resale flats may start to ease from the first quarter of 2009 onwards.
Experts expect the overall HDB resale prices to drop five to 10% in the full year.
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