http://www.straitstimes.com/archive/...anged-20140509

HDB resale volume improves in April, but prices little changed

Published on May 9, 2014 1:19 AM

By Janice Heng


THE Housing Board resale market became a little livelier last month, with 1,484 flats sold - 4.4 per cent up from March, and the most since last July.

But prices were flat, edging down 0.2 per cent after having recovered 0.3 per cent in March, according to Singapore Real Estate Exchange (SRX) flash figures yesterday.

Property experts and agents took a cautious view of the pickup in activity, noting that it was partly due to the end of the traditionally quiet festive period.

April's volume was also 14.4 per cent lower than a year ago.

But the experts added that transactions could keep rising.

"As prices continue to moderate, we expect more buyers coming back to the resale HDB market over the coming months," said ERA Realty key executive officer Eugene Lim.

Most property agents are less optimistic.

C&H Properties agent Lim C.M. said many buyers do call, but few end up buying. But Dennis Wee Realty agent Judy Tay has seen some buyers return.

One of them was civil servant Lee Chee Kwong, 47, who decided to buy now as prices seemed to be flat: "I didn't see much movement." He bought a four-roomer in Punggol East last month.

Agents and experts agree, saying that prices will fall a bit further before stabilising.

Last month's overall slide was due to prices of three-, four- and five-room flats falling 0.2 per cent, 0.8 per cent and 0.4 per cent respectively. But executive flat prices rose 1.2 per cent.

Cash-over-valuation figures have not been available since that cash premium was taken out of resale negotiations on March 10.

OrangeTee head of research and consultancy Christine Li expects prices to fall by 5 to 7 per cent over the whole year. ERA expects a 5 to 8 per cent fall.

Prices could be stable by as early as the third quarter, said R'ST Research director Ong Kah Seng.

In the rental market, in contrast, both prices and volumes are heading south. An estimated 1,653 flats were rented last month, down 3.8 per cent from March.

The median monthly rent stayed at $2,300 for the fifth straight month. But the SRX's new rental price index shows a 1.1 per cent fall from March.

Experts said rents and volumes would stay low as curbs on foreign workers mean lower lower rental demand. ERA expects rents to fall another 5 per cent this year.

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