There have been recent reports on the falling prices of Housing Board resale flats (“First HDB resale price dip since 2005″, Jan 25; and “Resale flat prices not yet at ‘steady state’”; last Sunday)
The number of resale transactions has fallen considerably and we are seeing some negative cash-over-valuation deals.
Despite this, National Development Minister Khaw Boon Wan says a “steady state” has yet to be reached and that home buyers should welcome the softening prices of HDB resale flats.
A few years ago, I took part in several flat balloting exercises as a first-time buyer. I was not successful and had to pay a steep price for a resale flat.
Then National Development Minister Mah Bow Tan had said flat owners would benefit from rising prices because their homes would become more valuable.
There is certainly a need to ensure flat buyers are not disadvantaged by overly high prices.
But it is equally imperative that due consideration be given to flat owners, so they will not suffer a loss in the value of their homes over time. Are there measures to ensure this will not happen?
Chan Kwang Ping