HDB resale prices dip 0.3% as sales fall 8.5%

Housing Board (HDB) resale flat prices dipped by 0.3 per cent last month as transactions fell by 8.5 per cent, according to flash estimates released by property portal SRX Property yesterday.

Last month, 1,074 flats were sold, down by 8.5 per cent from 1,174 units in January. Compared with February last year, the latest transaction number was a drop of 10.9 per cent.

The volume of resale units peaked at 3,649 units in May 2010.

HDB resale prices dipped by 0.3 per cent last month as compared with January, and fell 0.6 per cent compared with February last year.

Last month's slight price dip compared with a year ago was led by a decline of 1.9 per cent for flats in non-mature estates. Flats in mature estates, however, bucked the trend, with a 1.1 per cent increase in the same period.

The slip in last month's prices is marginal across all flat types and housing estates. Prices fell 0.2 per cent, 0.5 per cent and 1.7 per cent respectively for four-, five-room and executive flats. Meanwhile, the prices of three-room flats increased by 0.2 per cent.

In mature estates, prices rose by 0.4 per cent last month from January, while in non-mature estates, the drop was 0.8 per cent.

R'ST Research director Ong Kah Seng said the declines in resale flat prices and transactions last month were unsurprising as the periods before and after Chinese New Year tend to be slower, with weaker buyer sentiment and fewer flat viewings.

"We should not read the marginal price dips in January and February as (an indication) that HDB resale flat prices will trend south again," said Mr Ong. "In fact, January's and February's 0.3 per cent month-on-month price falls reflect stability in HDB resale flat prices."

Overall, buyers paid $2,000 less than the estimated market value last month.

In towns with more than 10 resale transactions last month, Bedok reported the highest above-market prices, as buyers there forked out $10,000 more. Clementi home prices were second-highest, with a price difference of $4,000.

Queenstown recorded the lowest below-market prices, with buyers paying $12,500 below value, followed by Ang Mo Kio, at $11,000.

A version of this article appeared in the print edition of The Straits Times on March 10, 2017, with the headline 'HDB resale prices dip 0.3% as sales fall 8.5%'. Print Edition | Subscribe