HDB resale prices fall 0.8% in March
SINGAPORE — Prices of Housing and Development Board (HDB) resale flats continued to fall, with the latest report from SRX Property showing a 0.8 per cent overall drop last month from February.
The decline was 0.8 per cent in non-mature estates and 0.9 per cent in mature estates. Compared with March last year, prices are down 6.6 per cent, said SRX Property yesterday.
Transaction volume rose 17.5 per cent, from 1,148 flats in February to 1,349 flats last month.
Flats also continued to be sold below their estimated market value, with the median Transaction Over X-Value (TOX) — SRX’s measure of whether people are underpaying or overpaying for properties — at negative S$3,000. However, this is an improvement from the negative S$4,000 seen in February.
Resale flats in areas such as Bukit Merah and Serangoon were sold above their estimated market value, while flats in Hougang, Yishun and Choa Chu Kang changed hands below their estimated market value.
Property analysts whom TODAY spoke to attributed the increasingly stable resale flat market to the growing number of Build-to-Order (BTO) flats. The price decline is expected to persist until the end of the year, they added, with the overall decrease expected to range between 5 and 8 per cent.
Mr Donald Yeo, the marketing and training head of real-estate agency HSR, said the drop in prices could also be due to buyers becoming more tech-savvy and checking the published transaction data of flats before making an offer.
“Seldom do you see Singaporeans offering above the price index. Buyers are more educated these days. They check the price index of flats before making offers that are usually lower ... and sellers who want to get their property out will have to settle for lower offers than the estimated value,” said Mr Yeo.
Analysts also noted that as more flats in newer towns are hitting the five-year minimum occupation period and adding to the supply in the resale market, areas that are already experiencing low TOX value could be affected.
Mr Thomas Tan, executive director of Re/Max, said: “As more flats mature in newer towns like Sengkang and Punggol, towns like Hougang will be affected as buyers will have more choices.”
The increase in the sales volume could be caused by the draw of falling prices, said analysts.
“With signs of a stabilising market, more buyers who have stayed on the sidelines may return to make purchases, as falling prices may tempt them back into the market,” PropNex CEO Mohamed Ismail Gafoor said.
His sentiments were shared by ERA analyst Eugene Lim, who added that the slowing down of the BTO programme, coupled with a stable resale flat market, might result in more buyers turning to resale HDB flats.
MATTHIAS TAY
