Resale deals dropped 82.7% to only 364 transactions.
HDB resale prices inched up 1.3% YoY and 0.1% MoM in May as most room types recorded increases, according to data from SRX. However, May prices are 13.1% lower than its peak in January 2013.
Four-room units led the uptick as resale prices went up 1.5% YoY. Five-room resale prices rose 1.1% and executive resale prices grew 0.2% over the same period. Meanwhile, prices for three-room flats dipped 0.3% YoY.
In addition, non-mature estates prices jumped 3.4% YoY, whilst mature estates prices slipped 1.8%.
In terms of volume, HDB resale transactions rose 13.1% MoM to 364 deals recorded in May 2020. This leads to a whopping 82.7% YoY plunge in HDB resale volumes.
“This is the lowest resale volume on record since 1990. The HDB resale volume dipped further as the economy entered a second month of the circuit breaker period where all physical house viewings were not permitted,” said Christine Sun, head of research & consultancy at OrangTee & Tie. “Further, the HDB hub and branches were closed during the circuit breaker period and no new appointments were scheduled to process the sales transactions.”
Breaking down by room types, 35.7% of the volume came from HDB four-room, 29.1% from five-room, 23.4% from three-room and 9.3% from executive. The rest are from one-room and two-room types.
The highest transacted price for a resale flat in May was achieved at $1.14m by a five-room unit at Tiong Bahru View in Bukit Merah. Amongst non-mature estates, the highest transacted price was achieved at $780,000 by a five-room unit at Parkland Residences in Hougang.
There are two HDB resale flats that were sold for at least $1m in May.
Meanwhile, overall median transaction over X-value (T-O-X) is positive $3,000 in May, which shows an increase of $3,000 from April. Both HDB three-room and four-room record positive $3,000 median T-O-X, whilst five-room posted a positive $2,000 and executive’s TOX is at negative $1,000.
Choa Chu Kang posted the highest median T-O-X at positive $4,500 in the same month, whilst
Yishun and Sengkang post the lowest median T-O-X at positive $1,000.
Looking forward, Sun said that sales may improve as some services at the HDB hub and branches are resumed in June. “Homebuyers and sellers can schedule appointments to sign the relevant documents to complete their sales purchase. We have also noticed that more buyers are becoming receptive to virtual home tours and buying homes without physically inspecting the units. Mindsets may start to shift as virtual home tours continue to gain traction in the coming months.”
Do you know more about this story? Contact us anonymously through this link.