More HDB resale flats sold in August

In all, 1,957 flats were sold, a 9.6 per cent rise over the 1,785 units in July.
In all, 1,957 flats were sold, a 9.6 per cent rise over the 1,785 units in July.PHOTO: ST FILE

More HDB resale flats were sold last month, with prices a tad higher than in the previous month.

In all, 1,957 flats were sold, a 9.6 per cent rise over the 1,785 units in July. The number of transactions completed also represented a 3 per cent increase over the 1,900 units resold in August last year.

Compared with July, last month's prices rose by 0.1 per cent. But the year-on-year comparison showed prices had dropped by 0.7 per cent.

These trends were sketched by property portal SRX Property yesterday. They were based on resale data the HDB released on Monday.

There are two probable reasons for the increased resales, said Mr Nicholas Mak, executive director of property firm ZACD Group.

One is the rush to seal the deal before the annual Hungry Ghost month, which began on Aug 22.

"Some people believe that it is inauspicious to make big life decisions, like buying a home, during the Hungry Ghost month," he said.

The other reason is that people typically buy flats before the holidays in the last quarter.

SRX Property also gave an overview of the areas that fetched prices above or below the estimated market value.

The majority of buyers purchasing flats in Serangoon paid a median of $11,000 above the estimated market value, making it the best-performing area in the resale market. It was followed by Bukit Panjang, with a median sum of $6,000 above market value.

At the other end of the scale, buyers of Hougang flats paid below market value, with the median at $7,000. Pasir Ris came next, with the median at $6,000.

International Property Advisor chief executive Ku Swee Yong said Serangoon flats have acquired a "certain shine" because of the upcoming development of Bidadari estate. Transport links also have an impact on resale flats, he added.

"It is rather unusual for Bukit Panjang to be among the better-performing areas, but a possible reason may be the Downtown Line, which is attracting more people to the area," Mr Ku said.

Conversely, Hougang and Pasir Ris flats fetched prices lower than the estimated market value as they are "quite out of the way", he added.

A version of this article appeared in the print edition of The Straits Times on September 08, 2017, with the headline 'More HDB resale flats sold in August'. Print Edition | Subscribe