Fewer HDB resale flats sold in December

3% fall in number of units sold as 1,858 flats change hands; prices also dip 0.3%

Some 22,477 HDB resale transactions were made last year, 3.4 per cent higher than in 2018. ST PHOTO: LIM YAOHUI
Some 22,477 HDB resale transactions were made last year, 3.4 per cent higher than in 2018. ST PHOTO: LIM YAOHUI

Fewer Housing Board resale flats were sold last month than in November, with a 3 per cent drop, even as their prices dipped 0.3 per cent in the same period.

In all, 1,858 HDB resale flats changed hands in December, real estate portal SRX Property said yesterday. Compared with a year ago, resale volume last month was up 29.6 per cent.

A total of 22,477 HDB resale transactions were made last year, 3.4 per cent higher than in 2018.

Four-room flats made up 41.3 per cent of the resale units sold last month, followed by three-room units at 25.8 per cent and five-room flats at 23.3 per cent, while executive condominium (EC) units made up 7.7 per cent. The rest were two-room flats.

Meanwhile, resale flat prices in December fell by 0.3 per cent from November's figures, although this was still 0.4 per cent higher than a year ago. Compared with the peak in April 2013, prices were 14 per cent lower.

Prices in non-mature estates fell by 1.6 per cent year on year while those in mature estates fell by 1.4 per cent.

The most expensive resale flat last month was a four-room flat at The Pinnacle @ Duxton, which was sold for $1.06 million. A five-room premium unit in Punggol was sold at $871,000, the most costly flat sold in a non-mature estate.

SRX forecasts that in the next three months, 4,785 flats will be put on the resale market as they approach their five-year minimum occupation period.

Its calculations show resale flat buyers last month paid $1,000 more than what it estimates to be the market value for flats. It was a $2,000 rise from the month before.

SRX data showed that the overall median transaction over X-value (TOX) was $1,000 last month. TOX measures how much a buyer is overpaying or underpaying for a property based on SRX's computer-generated market value.

EC flats recorded a median TOX of $15,000 last month while both three-and four-room flats had median TOX values of $1,000. Five-roomers saw a negative median TOX value of $2,000.

 
 

Flats in Serangoon had the highest median TOX at $40,000, while those in Bishan had the lowest median TOX of negative $6,000.

The dip in the number of resale flats sold in December compared with November could be seasonal.

Ms Christine Sun, head of research and consultancy at OrangeTee and Tie, said: "Housing activities typically slow down in December since most potential buyers are still on holiday and many sellers prefer to hold back their listings to the start of the following year."

She expects sentiment to improve, with higher flat sales volume this year.

Recent policy changes such as the introduction of the new Enhanced Central Provident Fund (CPF) Housing Grant in September last year and increased flexibility in CPF use for purchases of older flats may help spur demand.

 
 

"The overall market performance for 2019 is considered commendable, given the macroeconomic uncertainties and slower economic growth," Ms Sun said.

ERA Realty's head of research and consultancy Nicholas Mak made similar remarks, saying these policies "have catalysed the recovery of HDB resale prices".

"After declining for the past six years, the HDB resale flat price index could finally see the light at the end of the tunnel," he added.

A version of this article appeared in the print edition of The Straits Times on January 10, 2020, with the headline 'Fewer HDB resale flats sold in Dec'. Print Edition | Subscribe