HDB resale prices drop for first time in 7 months: Property index

The resale prices of Housing and Development Board (HDB) flats fell 0.5 per cent in January, the first decline in seven months, SRX Property said on Thursday (Feb 4).

Prices of three- and four-room flats fell by 0.5 per cent and 1 per cent, respectively. In contrast, five-room and executive flats rose by 0.2 per cent and 1.4 per cent, respectively, the flash estimates showed.

Overall resale prices were down 1.3 per cent compared to a year ago, SRX Property said.

A total of 1,286 resale flats were sold last month, down 8.6 per cent from the 1,407 transacted units in December 2015. However, compared to a year ago, resale volume was up 2.6 per cent, it added.

TOX NEGATIVE

The overall median Transaction Over X-Value (TOX), which measures whether people are overpaying or underpaying SRX Property’s estimated market value, remained unchanged at -S$1,000 in January.

For HDB towns with more than 10 resale transactions, Bishan posted the highest median TOX of S$19,000, followed by Serangoon with S$8,000. The lowest median TOX were in Clementi at -S$10,200, followed by Yishun at -S$7,000, according to the flash estimates.

PRICE STABILITY LIKELY “TO CONTINUE”

Property agency ERA said the market has achieved some price stability which will likely hold for the year.

“Going forward we expect this price stability to continue well into this year,” said Mr Eugene Lim, a key executive officer at ERA. “Of course, month to month you will see the price goes up and down, but these are very marginal and is nothing to be alarmed about.

“The key consideration remains that if the Government were to tweak or remove any of the measures, will the price rebound quickly? At this stage, they are probably not prepared to do any adjustment yet because I think (if) they could, any change in the measures now could lead to prices rebounding and this would unreel the work that has been done to try and stabilise prices.”

Source : Channel NewsAsia – 4 Feb 2016

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