More HDB flats being transacted at or below valuation: SRX

More Housing and Development Board (HDB) resale flats are being transacted at or below valuation. According to latest figures from the Singapore Real Estate Exchange (SRX), about 8,500 HDB resale flats changed hands in 2014.

In the fourth quarter of the year, 41.6 per cent were sold below valuation, compared to 36.9 per cent in the first three months of the year.

For transactions at valuation, these climbed from 15.7 per cent of all transactions in the first quarter to 37.6 per cent in the fourth quarter. On the other hand, the number of transactions above valuation fell from almost 48 per cent of all transactions in the first quarter to 20 per cent in the fourth quarter.

Property analysts said the overall trend is a result of several factors, including a weaker market sentiment and changes to HDB resale procedures put in place last March.

Mr Nicholas Mak, executive director for research and consultancy at SLP International Property Consultants, said: “As buyers and sellers start to be more familiar with these procedures, we also see that the percentage of transactions that were done above valuation has also fallen to just 20 odd per cent. And I think this also shows that the market is starting to stabilise.”

Source : Channel NewsAsia – 27 Jan 2015

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