Signs of HDB resale market stabilising

SINGAPORE - The HDB resale market has shown signs of stabilising, Minister for National Development, Mr Khaw Boon Wan, said in Parliament yesterday.

Mr Khaw was responding to a question tabled by Nee Soon GRC MP Lee Bee Wah.

Ms Lee had asked whether the HDB resale market has shown any signs of stabilising, in light of HDB resale prices rising to a high in the third quarter of this year.

She also asked whether there was any cause for concern and if the Ministry would consider introducing measures to moderate the prices of resale flats.

Mr Khaw said that the yearly Resale Price Index (RPI) growth has fallen from 14.1 per cent in 2010 to 10.7 per cent last year, and to 3.9 per cent in the first nine months of this year.

He added that while the uptick in quarterly RPI growth to 2 per cent in the third quarter of this year shows that things are improving, there was "still have some way to go".

Mr Khaw said that although a number of property cooling measures have been implemented, they would take some time to work their way through the market.

For example, the global low interest rate will take some time to return to its normal rate, and the huge local supply of new housing units will be available only over the next two to three years.