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Thread: HDB resale prices dip 0.3% in Feb, volume falls

  1. #1

    Default HDB resale prices dip 0.3% in Feb, volume falls

    HDB resale prices dip 0.3% in Feb, volume falls

    Resale transactions down 8.5% from January; expert attributes this to strong BTO supply and post-holiday lull

    Friday, March 10, 2017

    by Lee Meixian

    HDB resale prices were down 0.3 per cent in February compared to January, according to the SRX Property Price Index for HDB Resale. And resale transactions fell 8.5 per cent to about 1,074 HDB resale flats sold in February, down from 1,174 transacted units in January.

    But property consultants remain confident that HDB prices have reached a price equilibrium and continue to be stabilising.

    R'ST Research director Ong Kah Seng believes that the price drop was due to a strong supply of build-to-order (BTO) flats sapping demand from the HDB resale market. Also, the property market in February could still be in a lull following the festive season in end-January.

    "Buyers, agents and flat owners are still on a festive slumber mode in February, and have yet to return to actively arranging, negotiating and concluding property deals proper."

    The price drop was led by resale prices for transactions in non-mature estates. These fell 0.8 per cent. In comparison, HDB resale prices in mature estates rose 0.4 per cent.

    Mr Ong said this shows that mature estates' resale flat prices are still much better supported by their positive property fundamentals.

    "There was a substantial number of BTO flats released in February 2017, but the application rates were so high. Buyers generally understand that they can only try their luck in balloting for a mature estate BTO flat, so they continued to buy resale flat which match their requirements," he said.

    Among the flat types, resale prices of HDB four-room, five-room and executive flats fell 0.2 per cent, 0.5 per cent and 1.7 per cent respectively, while those of three-room flats rose 0.2 per cent.

    Overall, year-on-year, prices have decreased by 0.6 per cent from Feb 2016, and fallen 11.5 per cent since the peak in April 2013.

    Year-on-year, resale volume fell 10.9 per cent compared to 1,205 units resold in Feb 2016. Resale volume was also down by 70.6 per cent, compared to its peak of 3,649 units resold in May 2010.

    Mr Ong expects HDB resale prices to stay flat for the whole of 2017, barring any lifting of the current property cooling measures.

    "We can expect prices to recover marginally from March onwards," he said. "Flat buyers will also tap on the Proximity Housing Grant which was recently introduced to help them better afford a flat. This will be a key demand driver for resale flats in 2017 too."

  2. #2

    Default HDB resale prices dip 0.3% as sales fall 8.5%

    HDB resale prices dip 0.3% as sales fall 8.5%

    Mar 10, 2017

    Samantha Boh

    Housing Board (HDB) resale flat prices dipped by 0.3 per cent last month as transactions fell by 8.5 per cent, according to flash estimates released by property portal SRX Property yesterday.

    Last month, 1,074 flats were sold, down by 8.5 per cent from 1,174 units in January. Compared with February last year, the latest transaction number was a drop of 10.9 per cent.

    The volume of resale units peaked at 3,649 units in May 2010.

    HDB resale prices dipped by 0.3 per cent last month as compared with January, and fell 0.6 per cent compared with February last year.

    Last month's slight price dip compared with a year ago was led by a decline of 1.9 per cent for flats in non-mature estates. Flats in mature estates, however, bucked the trend, with a 1.1 per cent increase in the same period.

    The slip in last month's prices is marginal across all flat types and housing estates. Prices fell 0.2 per cent, 0.5 per cent and 1.7 per cent respectively for four-, five-room and executive flats. Meanwhile, the prices of three-room flats increased by 0.2 per cent.

    In mature estates, prices rose by 0.4 per cent last month from January, while in non-mature estates, the drop was 0.8 per cent.

    R'ST Research director Ong Kah Seng said the declines in resale flat prices and transactions last month were unsurprising as the periods before and after Chinese New Year tend to be slower, with weaker buyer sentiment and fewer flat viewings.

    "We should not read the marginal price dips in January and February as (an indication) that HDB resale flat prices will trend south again," said Mr Ong. "In fact, January's and February's 0.3 per cent month-on-month price falls reflect stability in HDB resale flat prices."

    Overall, buyers paid $2,000 less than the estimated market value last month.

    In towns with more than 10 resale transactions last month, Bedok reported the highest above-market prices, as buyers there forked out $10,000 more. Clementi home prices were second-highest, with a price difference of $4,000.

    Queenstown recorded the lowest below-market prices, with buyers paying $12,500 below value, followed by Ang Mo Kio, at $11,000.

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