HDB resale prices rise at fastest rate since February

Updated from : The Straits Times, 4 Sep 2020

Sales of Housing Board resale flats remained strong last month, with five units changing hands for at least $1 million, as prices grew at the fastest monthly rate since February.

There were 1.4 per cent fewer HDB resale flats sold last month compared with July, but this volume was 23.5 per cent higher than in the same month last year.

In all, there were 2,435 HDB resale transactions last month, flash estimates from real estate portal SRX showed yesterday.

Of the HDB flats sold last month, 40.3 per cent were four-room flats, 26 per cent were five-room flats, 23.2 per cent were three-room flats and 8.8 per cent were executive flats. The rest of the transactions involved multi-generation and two-room flats.

OrangeTee & Tie head of research and consultancy Christine Sun said the HDB resale market remained strong last month despite the Hungry Ghost Festival that takes place from Aug 19 to Sept 16, which typically sees lower sales activity.

“The strong sales volume over the past three months is not likely to be a ‘blip’ after the circuit breaker period,” she said.

“Market sentiment could be slowly recovering since the virus outbreak is stabilising in Singapore, and some sectors are starting to experience a business turnaround after the circuit breaker period.”

Data from SRX showed a 0.7 per cent increase in last month’s resale prices compared with July’s.

August’s resale prices were 2.1 per cent higher than those of the same month last year, but 12.1 per cent lower than the peak for HDB resale prices in April 2013.

Prices in non-mature estates rose by 3.3 per cent year on year, while those in mature estates rose by 0.2 per cent.

ERA Realty head of research and consultancy Nicholas Mak said the increase in the HDB resale price index last month represented the highest rate of monthly growth since February.

He said: “The growth in the price index was contributed by the resale transactions of HDB flats that recently completed the five-year minimum occupation period.

“These newer flats would usually command higher prices than the older flats in the vicinity.”

A five-room flat at Pinnacle@Duxton recorded the highest transacted price for a resale flat last month – at $1,185,000.

It was one of five HDB resale flats that sold for at least $1 million that month.

An executive maisonette flat in Hougang sold for $890,000 in what was the highest resale price for non-mature estates.

Data from SRX also showed that the overall median transaction over X-value (TOX) was a positive $3,000 last month, an increase of $2,000 compared with July.

Median TOX measures whether people are overpaying (in the case of positive TOX) or underpaying (when there is negative TOX) relative to the SRX Property X-value estimated market value for flats.

Flats in Bukit Batok recorded the highest median TOX, at positive $10,500, while those in Kallang/Whampoa recorded the lowest median TOX, at negative $4,000.