The prices of resale Housing Board flats and private residential properties could drop by about 10 per cent or more over the next two years as a result of new property market cooling measures announced by the Government on Wednesday (Dec 15), said Dr Lee Nai Jia, deputy director of National University of Singapore’s (NUS) Institute of Real Estate and Urban Studies.

“The HDB resale market is rising at a very fast pace, and there are more units transacted above $1 million,” said Dr Lee, adding that 211 HDB flats sold for above $1 million in the resale market in 2021, significantly more than the 77 HDB flats sold in 2020 and 56 in 2019.

Dr Lee said the market would take about two to three years to recalibrate itself to an equilibrium and that HDB and private residential sales should slow down “significantly” to fewer than 20,000 units transacted a year in that period. That is about the same level as the period between 2015 and 2017.

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