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28 Aug 2013

Experts say price of resale HDB deals and prices of bigger flats to drop by 10%

Source: The Straits Times

By Daryl Chin Property Correspondent

The price of larger resale flats and the number of resale deals might dip by about 10 per cent as a result of the Housing Board's latest measures, say experts.

Cash premiums paid for them could also decline, as news of the changes starts sinking in.

On Tuesday, National Development Minister Khaw Boon Wan unveiled policy changes, including tighter mortgage terms and shorter loan tenures, that aimed to encourage financial prudence and to stabilise the market.

But the resale HDB market, already at its lowest since 1997 in terms of transaction volume, is likely to take a beating. The hardest hit, said Propnex chief executive Mohamed Ismail, will be larger flat types, such as five-room and executive apartments.