The resale prices of Housing and Development Board (HDB) flats dropped 0.8 per cent on-month in March, SRX Property said on Thursday (Apr 9). They have been on a downtrend since January last year.
The drop in prices in March was seen throughout all property types, except for HDB executive flats which rose 1 per cent. Resale prices for three-room and four-room flats dropped by 0.9 per cent and 1.1 per cent, respectively, while five-room flats experienced a 0.5 per cent drop.
Overall, prices have declined 6.6 per cent from the same period a year ago and 11.1 per cent from the peak in April 2013, SRX Property said.
A total of 1,349 HDB resale flats were sold last month, a 17.5 per cent increase from 1,148 transacted units in February 2015. The resale volume fell 5 per cent, with 1,420 units resold in March 2014, SRX Property said.
The overall median Transaction Over X-Value (TOX), which measures whether buyers are overpaying or underpaying SRX Property’s estimated market value, remained negative at -S$3,000, up from –S$4,000 in February.
Among HDB towns which saw more than 10 resale transactions last month, Bukit Merah reported the highest median TOX of S$7,000, followed by Serangoon at S$6,000.
The lowest median TOX was seen in Hougang at -S$13,000, followed by Yishun and Choa Chu Kang at -S$9,000 and -S$8,500 respectively, the data showed.
Real estate firm HSR International said the price decline is expected to continue, but at a moderate pace, as rising sales volumes suggest buyers are starting to accept current market prices.
Said Mr Alan Tan, Head of Singapore Projects at HSR International Realtors: “The good news is that transaction levels have gone up. So that is a good sign – which means that buyers most probably are thinking or looking; that the market is at a level which they can accept. At S$400,000-plus for a five-room HDB resale flat, it is already at a level where most people would think that it is acceptable.”
Source : Channel NewsAsia – 9 Apr 2015