Fewer HDB resale flats sold in June; prices up 0.1%

Fewer Housing Board resale flats were sold last month compared with May, while prices inched up slightly.

Flash estimates from real estate portal SRX yesterday showed 1,895 HDB resale flats changed hands last month, an 8.7 per cent decrease from the 2,076 units in May.

The resale volume was also 4.8 per cent lower than the 1,991 units sold in the same month last year.

But resale prices increased by 0.1 per cent last month from the previous month. Prices of three-room, five-room and executive flats rose by 0.6 per cent, 0.3 per cent and 1.4 per cent respectively.

But prices for four-roomers fell by 0.3 per cent.

In mature estates, the prices were up 0.4 per cent, while those in non-mature estates dipped 0.1 per cent compared with May.

Based on the SRX property price index, June's prices were down 0.8 per cent from the previous year, and 14.1 per cent lower than the peak in April 2013.

OrangeTee & Tie's head of research and consultancy Christine Sun noted that the resale volume drop was within expectations, as sales activities usually slow down during the school holidays.

She said sales volume is expected to remain robust in the coming months as more flats will be reaching the five-year minimum occupation period.

 
 
 

"We may also see some positive impact from the policy tweaks that allow some buyers to use more Central Provident Fund monies to buy older HDB flats," she said.

As for the 0.1 per cent increase in resale prices, Ms Sun said this was more likely a blip, and the year-on-year 0.8 per cent fall in prices would better reflect the broader price weakness observed on the ground.

The overall median transaction over X-value (TOX) was zero last month, an increase of $1,000 from the previous month.

The median TOX measures whether people are overpaying (positive TOX) or underpaying (negative TOX) relative to the SRX Property X-value estimated market value for flats.

Only four-room flats had a positive median TOX of $1,000 last month. Three-room and executive flats saw a median TOX of negative $3,000 and negative $1,000 respectively, while that for five-room flats was zero.

Bishan saw the highest median TOX of $18,000.

A version of this article appeared in the print edition of The Straits Times on July 05, 2019, with the headline 'Fewer HDB resale flats sold in June; prices up 0.1%'. Print Edition | Subscribe