The property resale prices dropped even more, right across the market, during the third quarter. However, there were slightly dissimilar perspectives for the public and private sectors.
The Housing Board resale sector seems to be regaining control, West Coast Vale Condo private property prices underwent the biggest quarterly drop since the decline started.
According to a recent report, HDB resale prices dropped by only 0.3%.
It represents the ninth consecutive quarterly drop, but the littlest decline since prices started to decrease in 2013. In comparison, EL Development Condo private property prices have dropped by 1.3%; the biggest dip since the decline started during the final quarter of 2013.
West Coast Vale Condo
According to analysts, this is the second quarter of negligible damage for the HDB resale sector. There are many who believe that this represents increased control over the price of resale properties.
As HDB prices have dropped 1.8% during 2015, the chief of ERA Realty, Eugene Lim, predicts a total annual dip of only 2-2.5%. This is significantly different from the 6% decline of 2014.
There were a smaller number of HDB exchanges, with 4,893 properties purchased – this is in comparison with 5,286 over the second quarter in EL Development West Coast Condo.
EL Development West Coast Condo
Some property specialists attribute this to the imminent release of new properties next month, with the HDB planning to provide 7,000 build to order properties and an additional 5,000 sale of balance properties in West Coast EL Development Condo.
Yet, the number of exchanges is still greater than the figure for this same period, last year – specialists claim that decreases in price have encouraged more buyers to invest.
As regards the private resale sector, the price drop was all encompassing, but still seemed to be started by a 1.6% dip across the urban outskirts and the suburban areas.
Plus, prices within the primary central areas dropped by 1.2%, which is twice the 0.6% drop of the preceding quarter for EL Development West Coast Vale Condo.
It could be that developers and investors are being overly cautious. Whilst investors are safeguarding themselves against more price dips, developers are keen to prevent conflicts with release dates as this might weaken demand further.
EL Development West Coast Vale Condo
These developers are watching the government closely, particularly when it comes to tweaks to the cooling policies in West Coast Vale Condo.
According to the National Development Minister, Lawrence Wong, the real estate cooling policies driving the recent market decline will not be weakened or changed in the near future.
However, there are some experts who talk of ‘silver linings’ in the event that private property prices consistently drop at a greater rate than public resale prices.
The vanishing gulf between mass market condo properties and HDB resale properties could persuade HDB landlords to move on to private investments. This might then soften the blow from a drop in suburban prices and sales numbers for the twelve months to come for West Coast Vale EL Development.
Also, private residential rents are decreasing, but this is at a fairly sluggish pace.
They dropped 0.6% during the third quarter, in comparison with 1.1% during the second quarter. As regards non-landed residential sites, suburban rents dropped by the greatest amount (1.1%) – urban outskirts rents dropped by 0.8% and key central areas dropped by 0.4%.
In addition, landed property rents saw little change with just a 0.1% drop, in comparison with a 1% drop during the preceding quarter.