HDB resale prices gain 0.6% in January 2015

HDB resale prices gain 0.6% in January

Observations:

  1. HDB resale prices showed slight pick-up in January. HDB resale prices picked-up by 0.6% in January 2015 compared to December 2014.  The price increase was driven by HDB 4 and 5 Room flats whose resale prices increased by 1.1%, and 1.5%, respectively. On the other hand, the resale prices for HDB 3 Room and Executive flats saw a decrease of 0.9% and 0.6%, respectively.

According to the SRX Property Price Index for HDB Resale:

  • The last time HDB resale prices posted an increase was in January 2014;
  • Year-on-year, prices have dropped 5.7%, compared with January 2014;
  • Prices have declined 9.4% since the peak in April 2013;
  • Price change in Dec 2014 has been revised from a 0.4% decrease to a 0.3% decrease;

 

According to the SRX Property Price Sub-Indices for HDB Resale:

  • The increase of HDB Resale prices in January was seen by both mature and non-mature estates;
  • In Jan, HDB resale prices increased 0.5% and 0.7% in mature and non-mature estates, respectively;
  • Year-on-year, prices in mature estates have declined 3.0% from Jan 2014;
  • Year-on-year, prices in non-mature estates have declined 7.8% from Jan 2014;

  1. Resale volume dropped slightly. According to HDB resale data compiled by SRX Property, 1,255 HDB resale flats were sold in January 2015, a 3.1% decrease from 1,295 transacted units in December 2014.
  • Year-on-year, resale volume increased by 15.3% compared with 1,088 units resold in January 2014;
  • Resale volume is down 65.6% compared to its peak of 3,649 units in May 2010.

  1. Overall median Transaction Over X-Value (T-O-X) improved but stayed negative. According to SRX Property, HDB prices continue to face downward pressure and negative market sentiment in January 2015.  The median T-O-X for HDB measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value.
  • Overall Median T-O-X was NEGATIVE $1,000 in January 2015, a $3,000 improvement from NEGATIVE $4,000 in December 2014;
  • Median T-O-X for HDB 3 and 4 flats were negative while 5 room and Executive flats saw a neutral and positive median T-O-X, respectively.

  1. Geylang posted the highest median T-O-X. For HDB towns having more than 10 resale transactions with T-O-X in January 2015, Geylang reported the highest median TOX of $8,400, followed by $8,000 in Bukit Merah and Kallang/Whampoa.

This means that majority of the buyers in these towns has purchased units above the computer-generated market value.

5. Among relatively active towns, Clementi posted the most Negative median T-O-X. Among HDB towns having more than 10 resale transactions with T-O-X in January 2015, the lowest median T-O-X were in Clementi, Bukit Batok, and Toa Payoh, at NEGATIVE $ 15,500, NEGATIVE $10,500, and NEGATIVE $7,500, respectively.

This means that majority of the buyers in these towns has purchased units below the computer generated market value.

Source: http://www.stproperty.sg/articles-property/singapore-property-news/hdb-resale-prices-gain-06-in-january/a/198919