Property News: Increasing Rental, Declining Resale Transactions in Q1

Renting out your property? Good news, landlords! With a booming HDB rental market, there has never been a better time for you to do so.

Increasing HDB Rental Transactions

According to the Housing and Development Board (HDB), the amount of HDB rental transactions increased by 2.6% from 11,479 in the fourth quarter of last year up to 11,775 in the first quarter. Overall, the year-on-year rental transactions have increased by 0.5%, at more than 50,000 rented HDB flats as of March 31. This is an increase of 1.8% from the previous quarter.

On the other hand, Singapore’s resale public housing market persisted at a sluggish rate in the first quarter in 2019. Overall, this is in line with lower resale prices by 0.3% and a declining transaction rate of 14.2%.

Unlike the increasing HDB rental transactions, resale transactions have declined.

Declining HDB Resale Transactions

Reflecting a dip on the price movements in the resale public housing market, the resale price index showed a decrease from 131.4 to 131.0. This is reflected by an overall declining trend of HDB resale flat prices in the last two quarters, at 0.1% in the third quarter and a further 0.2% in the fourth quarter of 2018.

In addition, the number of resale homes sold in the first quarter of this year saw a decline of more than 800, from 5,637 in the fourth quarter of last year and down to 4,835 in the first quarter. Compared to the first quarter of 2018, this is in contrast to a year-on-year increase of 8.5% of the number of homes sold.

To keep up with the market, HDB seeks to launch more than 3,000 Build-to-Order (BTO) flats in Kallang Whampoa, Tengah and Woodlands in May’s sales exercise, along with a concurrent Sale of Balance Flats exercise. A total of 15,000 new flats are also in plans for launch this year.

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Source: CNA