According to the Housing Development Board resale price index, the price of resale flats in Singapore have fallen for the second month in a row, yet the actual sale volumes of the flats have increased by a considerable amount. The pricing index back in February 2017 noted that the resale price was around 135; a year later and it shows that the resale price has dropped down to approximately 131.7. The executive director of ZACD Group, a real estate investment firm, noted that the slight dip in prices is not surprising.
How Does This Look Compared to Last Year?
As of January 2018, the prices have fallen about half a percent down from December 2017, while February saw another 0.6 percent drop. Despite this, the total resale flats that sold increased by 9.6%, coming in at almost 1,200 units (1,195) up from 1,090. Apparently, this trend is not abnormal as the number of resale flats that were sold last month was also almost ten percent higher than they were a year ago, despite pricing being down almost two and a half percent from February of last year. Since April 2013, the overall percentage of resale prices has dropped by 13.5 percent.
Both executive flats, three-room, and four-room resale flat prices were decreased this month, however, five-room units saw the prices go up by half a percent since January.
Why Are Sale Volumes Up?
Generally speaking, one of the biggest reasons why resale flats are selling in bigger volumes is because they are convenient in terms of move-in time. Most buyers end up getting the keys within a week or two, rather than having to wait months. The only other thing that might have a bearing on the sale volumes are government measures.
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