SINGAPORE — Resale prices of Housing and Development Board (HDB) flats dipped 0.3 per cent in April from a month ago, flash estimates from SRX Property showed yesterday.
In terms of volume, there was a 4 per cent drop.
Last month, resale prices of five-room flats increased by 0.2 per cent, while three-room, four-room and executive flats fell by 0.2 per cent, 0.7 per cent and 0.9 per cent respectively, compared with March. Upcoming executive condo launches include Hundred Palms Residences EC, Anchorvale Lane EC, while existing ones include Parc Life, Signature at Yishun, Brownstone EC, Visionaire EC, Inz Residence, The Criterion EC and Northwave EC, The Terrace EC, The Vales EC, Sol Acres EC and The Bellewoods EC. Hundred Palms Residences details and Hundred Palms EC show flat will be available shortly.
SRX figures showed that year on year, resale prices fell by 0.3 per cent from April last year. Prices have declined by 11.4 per cent since the peak in April 2013.
A total of 1,834 resale flats were sold last month, from 1,910 units in March. Year on year, resale volume of HDB flats was up 0.9 per cent, given that 1,850 units were resold in April last year. Resale volume was down by 49.7 per cent compared with its peak of 3,649 units in May 2010.
Resale transaction volumes remain high on a year-on-year basis, said a report by real estate firm OrangeTee’s head of research and consultancy Wong Xian Yang and research analyst John Tay.
In the first quarter of this year, volumes increased by 1.82 per cent, compared with the same period last year, and are the highest first-quarter numbers since 2012. This is “likely due to a better matching of price expectations between buyers and sellers”, according to OrangeTee.
Going forward, the increase in housing grants for first-timer families buying resale flats using their Central Provident Fund (CPF) savings are likely to help support prices.
While volumes are expected to increase slightly, however, the analysts “do not expect a robust price recovery due to strict loan curbs and a healthy pipeline of BTO (build-to-order) launches”.
First-timer families buying four-room and smaller resale flats will now enjoy S$50,000 in CPF housing grants while those buying five-room or larger resale flats will receive S$40,000, up from S$30,000 previously.
Together with the Additional CPF Housing Grant and Proximity Housing Grant, eligible first-timer families can now enjoy up to $110,000 in housing grants.
According to the SRX flash estimates, the overall median Transaction-Over-X-Value (TOX) — a measure of how much a buyer is underpaying or overpaying for a unit — last month was negative S$1,000, compared with zero in March.
The median TOX for HDB three-room, four-room, five-room and executive flats last month were S$1,000, negative S$2,000, negative S$3,000 and S$7,500 respectively.
For HDB towns with more than 10 resale transactions, Bishan reported the highest median TOX of S$11,500, followed by S$9,500 in Geylang, indicating that the majority of buyers in these areas bought their resale flats above the market value.
On the other hand, Bukit Merah and Serangoon reported the lowest median TOX at negative S$10,000, followed by Kallang/Whampoa and Pasir Ris at negative S$8,000, which means that many buyers in these areas bought their units below the market value.