Decline in HBD Resale Flat Sales as prices fall

From past few months, the sale of Housing Board Resale flats as on its peak; but it faced considerable decline in the previous month. Probably, it happened due to continues fall in the prices.

Stats revealed by real estate portal SRX property says that almost 1875 flats were sold, but it is 4.9% lesser sale value as compared to the August.

If the value is compared to the sales closed in the same month previous year, it shows a considerable decay of 6.3%.

The four-room flats sold by the last month were able to make up 39.6% whereas the five-room flats lead to 24.9% value. Other than this, the exclusive flats were able to make up 7.6%- and three-room flats limited to 25.7% only.

When compared to the stats presented in the month of August, the resale flat prices came down by almost 0.2%. However, they reported a rise of 0.1% as compared to the previous year.

The overall resale flat prices for the third quarter declined by 0.1% this year, and the trend was downward right from the starting phase of the year.

If we compare the sales figure with the peak market performance of April 2013, the overall price decay is 14.1%. For the mature estates, the price came down by 1.2%; whereas, for non-mature estates, it rose by almost 0.9%.

A four-room unit at the famous The Pinnacle@Duxton point was sold on the highest price of $1 million in the previous month. Also, a 34 years old, well designed executive maisonette at Bishan was also sold with the same price tag.

The forecasts made by SRX reveals that almost 2107 flats will join the HBD resale market in the coming three months. They recently completed the occupation period of a minimum of five years.

The calculative observations reveal that people are not willing to spend more than the estimated market value for any of these listed flats. SRX data also reveals that the overall median transaction or the TOX value was negative $2000 by the previous month.

Note that, median TOX value is a measure of whether people are underpaying or overpaying; the first case is shown by negative TOX value and the later with positive values.

The HBD exclusive flats reported a value of $6000 in the previous month, and it is observed to be negative median TOX. On the other side, the negative median TOX values for four-room and three-room flats was observed to be $1000 and $2500. Similarly, the five-room flats reported the positive median TOX value of $1000.

Christine Sun, the head of research and consultancy at Orange Tee & Tie, said that the fall in the sales volume from the month of August to September id basically a seasonal decline. She also added that more than 15000 resale flats were sold during the first eight months of 2019 and it is believed that the overall resale transactions of this year will reach the estimated count of 22000 to 24000.


Latest new launch in Singapore