HDB prices have largely stabilised

SINGAPORE — The resale prices of Housing and Development Board (HDB) flats inched up in February after a slight decline in January, flash estimates from SRX Property showed on Thursday.

On a month-on-month basis, HDB resale prices were up 0.2 per cent in February. In January, prices fell by 0.5 per cent after rising for six consecutive months. Upcoming executive condo also include The Visionaire EC, Wandervale EC,  Parc Life EC while existing ones include The Terrace EC, Brownstone EC, Waterwoods EC, Signature at Yishun, Skypark Residences, The Vales EC, The Criterion EC, Bellewaters EC, Bellewoods EC.

Prices of three- and four-room flats rose by 0.2 per cent and 0.8 per cent, respectively.

In contrast, prices of five-room and executive flats fell by 0.1 per cent and 0.7 per cent, respectively.

Overall resale prices were down 0.6 per cent compared with a year ago, the SRX report said.

Commenting on the latest figures, Mr Eugene Lim, key executive officer of ERA Realty Network, said: “The signs are becoming clearer that resale HDB prices have largely stabilised over the last two years and may have bottomed out. “

However, he cautioned that the headwinds remain strong. “Though we may see month-on-month increases for the different flat types time to time, the possibility of a runaway price increase is very remote.”

Mr Lim said most buyers continue to be guided by the latest transacted prices when making their offers to purchase flats.

As such, he added, it would be a mistake for sellers “to read that the market is on the rebound and as such increase the asking price”.

A total of 1,200 resale flats were sold last month, down 6.7 per cent from the 1,286 transacted units in January, the SRX data showed.

However, compared with a year ago, resale volume was up 4.5 per cent.

Mr Lim said the lower volume was largely due to the Chinese New Year festive period.

“We are likely to see a good run for the resale HDB market in the March–July window, before the Hungry Ghost month sets in,” he added.

The overall median Transaction Over X-Value (TOX), which measures whether people are overpaying or underpaying SRX Property’s estimated market value, fell to -S$2,000 in February.

Mr Lim said: “The monthly fluctuations in TOX is marginal, and this supports the view that resale HDB prices are very stable and majority of the transactions are largely done around valuation.”

For HDB towns with more than 10 resale transactions, Kallang/Whampoa posted the highest median TOX of S$9,000, followed by Sengkang and Yishun with S$5,000.

The lowest median TOX were in Choa Chu Kang at -S$16,000, followed by Toa Payoh at -S$10,000, the SRX report said.

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