The resale prices of Housing and Development Board (HDB) flats rose 0.6 per cent on-month in January, the first increase in 12 months, the Singapore Real Estate Exchange (SRX Property) said on Thursday (Feb 5).
Still, an ERA analyst cautioned that the price increase does not mean the market is rebounding. “The increase has more to do with the up and down fluctuations that is associated with tracking prices on a monthly basis. We expect prices to be muted, at least for the first half of this year,” said ERA Key Executive Officer Eugene Lim.
The price increase was driven by four- and five-room flats, whose resale prices rose by 1.1 per cent and 1.5 per cent, respectively. In contrast, the resale prices for three-room and executive flats fell 0.9 per cent and 0.6 per cent, respectively.
Overall, prices have declined 5.7 per cent from the same period a year ago and 9.4 per cent from the peak in April 2013, SRX Property said.
A total of 1,255 HDB resale flats were sold last month, a 3.1 per cent decline from the 1,295 transacted units in December. Compared with a year ago, resale volume was up 15.3 per cent, SRX Property said.
TOX REMAINS NEGATIVE
Overall median Transaction Over X-Value (TOX), which measures whether people are overpaying or underpaying SRX Property’s estimated market value, improved but remained negative in January at -S$1,000.
For HDB towns with more than 10 resale transactions last month, Geylang reported the highest median TOX of S$8,400, followed by Bukit Merah and Kallang/Whampoa with S$8,000. The lowest median TOX were in Clementi, Bukit Batok and Toa Payoh, at -S$15,500, -S$10,500 and -S$7,500, respectively.
Source : Channel NewsAsia – 5 Jan 2015