SINGAPORE - Resale prices of Housing Development Board (HDB) flats dropped for a fifth consecutive month in June, slipping 0.6 per cent compared to May - marking a new two-year low since April 2012.
Get the full story from The Business Times.
Here is the SRX flash report:
HDB resale prices drop for the 5th consecutive month. Overall, HDB resale prices slipped 0.6 per cent in June compared to May. The price drop is evident in 3,4,5-room flats which saw a decline of 0.6 per cent, 0.8 per cent, and 0,3 per cent respectively. Executive flats on the other hand experienced a 1.3 per cent increase in price. However, compared to its peak in Feb 2013, Executive flats showed a decline of 5.1 per cent.
The SRX HDB Price Index shows that June 2014 prices marked a new 2-year low since April 2012. Compared to the peak in Apr 2013, prices have declined by 6.8 per cent. Year-on-year, prices also dropped by 6.1 per cent from June 2013. Since the beginning of this year, prices have declined 3.0 per cent.
Resale volume remained flat. According to HDB resale data compiled by SRX, 1,315 HDB flats were sold in June's resale market. June's volume remained relatively flat from May's 1,320 transacted units. On a year-on-year basis, June's resale volume is also relatively flat compared with 1,325 units resold in the same month of last year. Comparing to the peak where 3,649 units were resold in May 2010, the volume is still down by 64.0 per cent.
Rental volume down 2 per cent. An estimated 1,590 HDB flats were rented in June 2014, a 2.0 per cent decrease from May's 1,622 units. On a year-on-year basis, June's rental volume was 0.9 per cent higher than the same month of last year in which 1,576 units were rented.
Rental price fell 1.1 per cent. Overall HDB rental prices decreased by 1.1 per cent in June compared to May, reaching a new low since Jan 2012. 4,5-room flats and executive flats softened by 1.7 per cent, 1.3 per cent and 1.1 per cent respectively, while 3-room flats saw a slight 0.1 per cent price increase. On a year-on-year basis, overall rental prices in June 2014 are down 3.4 per cent from the same period last year.
Overall median Transaction Over X-Value (TOX) remains negative. HDB prices continue to face downward pressure. The median T-O-X for HDB, which measures whether people are overpaying or underpaying the SRX estimated market value, remained at NEGATIVE $4,000 for June 2014. The median TOX has been negative since May 2013.
Geylang saw positive median TOX. For HDB towns with more than 10 resale transactions in June 2014, Geylang was the only one with a POSITIVE median TOX's of $1,500.
This means that majority of the buyers in Geylang have purchased their units above what other buyers who came before them paid for in similar units.
Majority of the HDB towns saw negative median TOX. 18 out of 26 towns saw negative median TOX in June. Among HDB towns with more than 10 transactions, the lowest median TOX are in Hougang, Punggol and Sembawang, at NEGATIVE $ 9,000, NEGATIVE $8,100, and NEGATIVE $8,000 respectively.
This means that majority of the buyers in these towns have purchased their units below what other buyers who came before them paid for in similar units.