News
RESIDENTIAL PROPERTY | Staff Reporter, Singapore
view(s)

HDB resale prices fell 0.4% in April

This could be attributed to price weaknesses amongst older flats in mature estates.

HDB resale prices dipped 0.6% YoY in April, according to the SRX Residential Property Flash Report. This represents a 14% fall from its peak in April 2013.

HDB resale prices also decreased 0.4% in April from a 0.2% price increase in March, the report added.

According to SRX, only HDB 4 Rooms recorded a price increase by 0.2%. Meanwhile, HDB 3 Rooms, 5 Rooms, and executive prices dropped by 1.6%, 0.2%, and 1.6%, respectively. Prices of HDB resale flats in both mature and non-mature estates slipped 0.7% and 0.1%, respectively compared to the prices in March.

Christine Sun, head of research & consultancy at OrangeTee & Tie, noted that the fall in prices could be due to a general price weakness of older flats in mature estates.

Also read: Older flats defy depreciation concerns as sales hit record high in Q1

“Some owners may have accepted lower price offers in light of rising competition from newer flats in non-mature estates reaching their five-year MOP and concerns about the depreciating value of aging flats,” she said.

In terms of volume, 1,931 HDB resale flats were sold in April, representing a 16.5% increase from 1,657 transacted units in March 2019, SRX Property noted. Resale volume during the month went 4.3% YoY higher than in 2018.

“Last month's higher sales volume is within expectation as there are many flats reaching their five-year Minimum Occupation Period (MOP) this year and eligible for resale,” Sun further commented.

Overall median transaction over X-value (T-O-X) is negative $1,000 in April, representing a decrease of $1,000 as compared to March 2019, meaning that buyers are underpaying.

Pasir Ris posted the highest median T-O-X at positive $7,000, followed by Sengkang at $4,000. On the other hand, Ang Mo Kio recorded the lowest median T-O-X at negative $7,500, followed by Clementi and Queenstown at negative $7,000.

Also read: Chart of the day: Check out which estates saw the highest resale transactions in Q1

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.