Minister: HDB resale market not in 'steady state' yet

SINGAPORE - The HDB resale market has "finally turned the corner", said National Development minister Khaw Boon Wan in a blog post on Saturday.

Mr Khaw based his comment on HDB's resale housing data for the fourth quarter of last year.

Resale HDB flat prices fell for the first time since 2005, according to data released by HDB on Friday.

While "the balance between sellers and buyers is becoming more neutral" and the "softening resale HDB flat prices will no doubt be good news for home buyers", Mr Khaw said that things have not reached a steady state.

Over the next three years, 80,000 new HDB flats will be completed, with 30,000 new flats to be completed this year.

While most of these buyers are first-timers, some home owners will need to dispose of their existing flats within six months of collecting the keys to their new flats, he said.

Of the 18,100 HDB resale transactions last year, 2,800 units came from households who were in the process of moving to their new flats.

Mr Khaw expects this number to double to about 6,000 units each year for the next three years. The figure does not include the number of HDB upgraders moving into newly completed private property and selling their HDB flats.

As this will have an impact on the resale HDB market from this year. Mr Khaw said the Government will be monitoring the situation closely.

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