Why are home buyers able to find good buys?

THE volume of HDB resale transactions in September 2016 contracted 11.3 per cent to 1,666 resale flats from 1,879 flats in the preceding month, according to data compiled by SRX Property.

Year on year, however, the figure was up 10.8 per cent from the 1,504 flats resold in September 2015.

SRX Property’s HDB resale flat price index inched up 0.1 per cent month on month in September 2016, according to its flash estimates released on Thursday. This contrasts with a 0.7 per cent month-on-month fall in August 2016. Upcoming executive condo launches include Yio Chu Kang EC, Inz Residence EC, Choa Chu Kang EC, Anchorvale Lane EC,  while existing ones include The Terrace EC, Brownstone EC, The Vales EC, Parc Life EC , Sol Acres EC, The Visionaire, Bellewoods EC, Signature at Yishun, The Criterion EC and Northwave EC.

On the month-on-month resale price performance among the various flat types in September 2016, SRX Property said that prices of three-room and executive flats retreated 1.4 per cent and 0.4 per cent, respectively. However, the resale prices of four-room and five-room flats climbed 0.8 per cent and 1.2 per cent, respectively.

On a year-on-year basis, SRX’s overall resale price index for HDB flats is down 0.4 per cent from September 2015. From the peak in April 2013, the index has eased 11.4 per cent.

SRX Property said its subindex for flats in mature areas dipped 0.2 per cent month on month in September 2016, while in non-mature areas, prices appreciated 0.4 per cent over the same period.

Year-on-year, however, prices have advanced 0.4 per cent in mature estates but retreated one per cent in non-mature estates.

SRX Property said that last month’s transaction volume of 1,666 HDB resale flats was down 54.3 per cent from the May 2010 peak of 3,649 flats.

The overall median transaction over X-Value (TOX) swung to positive S$2,000 in September 2016 from negative S$1,000 in August 2016. The median TOX measures how much people are overpaying or underpaying against the computer-generated estimated market value or the so-called X value.

PropNex Realty chief executive Ismail Gafoor said the latest SRX figures are in line with market movement over the year.

The year-on-year fall in resale prices has declined from 6 per cent in 2014, to 1.6 per cent last year to less than 1 per cent in the first nine months this year, he noted.

“It’s a good time for people to enter the market. This is a period where sellers can look out for an upgrade opportunity, and buyers may be able to find good buys,” he said.

Waiting further may not mean prices will fall further, he added, as they are falling in a way that is “insignificant”.

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