HDB resale volume is expected to hit to a 10-year low this year at around 16,500 to 17,000 units, while resale prices are expected to drop by as much as seven percent, according to PropNex and reported in the media.
HDB resale prices will continue to be affected by a looming flood of new homes as well as the continued impact of the government’s property cooling measures such as shorter loan tenure, lower mortgage servicing ratio and a three-year minimum waiting period for PRs looking to purchase HDB resale flats, the report said.
Meanwhile, 2015’s outlook also appears to be bleak, with a possible five to six percent full year drop.
“This is mainly due to the increased number of second timers collecting their keys to their new BTO flats, and they will have to sell their existing flats within six months. This figure is expected to be about 6,000 annually for the next two years,” said PropNex.
PropNex CEO Mohamed Ismail noted that home buyers are more restrained if their TDSR is near 60 percent or MSR is over 30 percent.
“Loan curbs and softer prices will ultimately mean that HDB upgraders will find it more prohibitive to upgrade to a private property,” he said.