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.
“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.
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