Total transactions dipped 8.7% to 1,895 resale flats.
HDB resale prices rose slightly in June by 0.1% MoM. On a YoY basis, rates were lower 0.8%, according to an SRX media flash report.
A total of 1,895 HDB resale transactions were made in June, lower by 8.7% from the 2,076 transacted units in May. Resales are also lower by 4.8% compared to the 1,991 units resold from a year ago.
According to Christine Sun, head of research and consultancy at OrangeTee & Tie, the decrease in the total resale flats sold was expected as resales usually slow down in June due to the school holidays.
The increase in price is just a “blip”, said Sun. “Whilst resale prices have increased marginally by 0.1% MoM in June, it has decreased 0.8% YoY. The marginal increase is more likely a blip and the YoY price decrease reflects closer to the broader price weakness that we have observed on the ground,” the report noted.
Sun adds that despite the MoM decrease quarterly sales transactions still rose significantly by 30.3% with 5,902 units sold in Q2 compared to the 4,531 units sold in Q1.
Overall, the prices were 14.1% lower than the peak in April 2013.
SRX noted that HDB 3 Room, 5 Room, and Executive prices rose by 0.6%, 0.3%, and 1.4% respectively. Meanwhile, 4 Room price fell by 0.3%. → Year on year ba to or month on month comparison?
Additionally, SRX reported that the price of mature estates increased 0.4% and rates for non-mature estates decreased 0.1% compared to May. On a YoY basis, rates for mature estates decreased 2.1% whilst prices of non-mature Estates increased 0.1%.
Sun observed that the prices for mature estates may have slipped as owners of older flats may be moderating their asking prices due to rising competition from newer flats that have reached their five-year Minimum Occupation Period (MOP). There are also ongoing concerns regarding the depreciating value of ageing flats.
Demand for older HDB flats may improve in the coming months because of policy tweaks allowing some buyers to use more CPF monies to buy older flats, Sun added.
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