A 6.2% drop in 2014 of HTB flat resale sales is the largest since the 8.2% drop in 2001. This is according to data published by the housing board on Friday and reported by PropNex Reality./
Based on the quarterly basis of sales for 2014 the 3rd quarter fell 1.5%, which marked the 6th consecutive 3-month period of declining sales.
Westwood Residences Resale Prices
Resale volume dropped 17,318 units from the 18,100 units sold in 2013. This indicates a 4.3% drop in the HTB market since last year as fewer buyers are entering the market at this time for Westwood Residences.
Numerous causes were cited such as a combination of property curbs that occurred as reducing the Mortgage Servicing Ratio (MSR) of 30%. Another factor was the maximum loan term of 25 years for HTB mortgage loans, and finally the three-year wait for new PR’s before they can buy resale flats all combined with the allowance of singles to buy 2-room build-to-order (BTO) flats in non-mature estates. This was all reported along with the total drop in resales by Propnex as well.
New Westwood Residences
By March 2014, new buyers a resale flats could only obtain the valuation report after the deal is sealed and the option to purchase (OPP) had been granted to them. This made Westwood Residences buyers more cautious when submitting an offer for a flat reported PropNex.
“”There was also an increase of BTO flats released during recent years that added pressure to drive down the resale market””, commented PropNex’s CEO Mohamed Ismail. He went on with, “”Over 77,000 BTO flats were launched between 2011 and 2013, more than twice the number in the 3 previous years. The Sale of Balance Flats programme has offered a good number and variety of choices for 1st and 2nd time Westwood Residences buyers.””
Westwood Residences Showflat
His prediction for 2015, expects the resale prices to correct further by at least 5 to 6% and the sales volume to hit around 19,000 to 20,000 units, which he believes is due to the lower asking prices and the new resale policies, which have reduced the focus on Westwood Residences Cash-Over-Valuation (COV).