HDB released their fourth qurater 2017 property market information and the Resale Price Index tracked by them showed a fall of 0.2% on a quarter on quarter basis and a fall of 1.5% on a year basis.
The quarterly decline is less negative than the -0.7% registered in 3Q2017, but the decline of 1.5% on a yearly basis is the most severe since 4Q2015 when prices fell 1.6% y-o-y.
Between 4Q2013 and 4Q2017, there has been only one quarter of positive yearly increase in 3Q2016, and that was for only 0.1%.
Between the peak index reading of 149.4 in 2Q2013 and 4Q2017, the index has fallen 11.2% and there has been no sign that prices will improve.
The performance of HDB resale flats is a divergence from the private residential market where prices are beginning to look up.
I can think of a few reasons why HDB flat prices are falling…