In Singapore, the Housing and Development Board administers public housing, which accounts for the majority of residential housing, with approximately 17 in 20 Singaporeans living in such housing. Resale of HDB flats is permitted, and existing owners sell them on the open market to eligible buyers at a pre-agreed price. These prices must be declared to the HDB, although it does not regulate them.
In the first quarter of 2014 (Q1), the resale price index fell from 201.7 (4th quarter of 2013) to 198.5 – 1.6%, according to HDB’s InfoWEB. Resale transactions also decreased by 5%, from 4,001 cases registered in the 4th quarter of 2013 to 3,781 cases.
With the March 10, 2014 revision in resale procedures announced by MND Minister Khaw Boon Wan, effective Q1 2014, HDB stopped publishing median cash overvaluation by city and floor type , which was previously published quarterly. Additionally, any COV data previously available in HDB InfoWEB was removed. The purpose of the March 10 revision was to reduce the focus on COV transactions by accepting valuation requests only after prospective resale flat buyers have been granted an OTP (Option to Purchase).
In order to facilitate resale flat price negotiations, both sellers and buyers of HDB flats have the option of consulting the latest negotiated prices of similar resale flats, which can be found daily on HDB InfoWEB. Electronic services that can help buyers and sellers with the necessary information are:
Centralized map services – an online service that buyers of flats can use to consult the negotiated resale prices registered for each block located on the map. In addition, flat buyers also have the ability to check the negotiated resale prices within a five hundred meter radius of any existing DBSS (Design Build Sale Scheme) project or HDB blocks.
Fixed resale prices e-Service – an interactive online service that potential flat buyers can use to browse through available flats based on type, prices, resale request registration date, etc. This service is available on smartphones.
Regarding the HDB rental market, the number of flats approved for subletting by the Housing and Development Board grew by 2.1%, going from 45,674 flats in the last quarter of 2013 to 46,637 units in the first quarter of 2014. In addition , sublease rental operations went from 7,268 cases registered in the 4th Quarter of 2013 to 8,485 cases in the 1st Quarter of 2014. The increase was 17%, according to HDB.
In the first quarter of 2014, the Housing and Development Board put 6,636 flats up for sale in two BTO years. The May 2014 BTO exercise will generate around 3,060 flats in Woodlands and Bukit Batok, with a further 3,000 flats offered in the concurrent balanced flat sales exercise.
