HDB resale flat prices dip 0.2% in April Resale prices of HDB flats dipped 0.2 per cent in April over March. The drop was driven by three, four and five-room HDB flats, which saw price weakening of 0.2 per cent, 0.8 per cent and 0.4 per cent respectively. However, prices of executive flats rose 1.2 per cent. Overall, HDB resale flat prices for April were down 5 per cent year-on-year, show latest figures from the Singapore Real Estate Exchange (SRX). The total number of HDB flat resale transactions at 1,484 in April is a 4.4 per cent month-on-month improvement but down 14.4 per cent year on year. HDB prices continue to face downward pressure, with the overall median transaction over X-value (TOX), which measures how much people pay over the recent transaction prices, remaining in negative territory last month. The overall median TOX for April was negative $4,000, a worsening of the negative $3,000 for March. ERA Realtys key executive officer Eugene Lim said: Going forward, we find this encouraging. As prices continue to moderate, we expect more buyers coming back to the HDB resale market over the coming months, lifting resale volumes amidst stabilising prices. A majority 21 out of 26 HDB towns saw zero or negative median TOX in April. Among HDB towns with more than 10 transactions, the lowest median TOX were in Punggol and Yishun at negative $9,000 and negative $8,000 respectively. Queenstown and Jurong East had the highest median TOX at positive $2,500 and positive $2,400, respectively. This means more than half of the buyers in these towns paid above recent transaction prices. Jurong Easts growth as a regional centre has been a positive factor for HDB resale prices in the area. Queenstown is a mature estate and has always been popular, said ERAs Mr Lim. In the leasing market, rental contracts for 1,653 HDB flats were entered into last month - down 3.8 per cent month-on-month and 5.3 per cent year-on-year. Rentals continued to soften, with SRX overall HDB flats rental index easing 1.1 per cent month-on-month in April. Rents of three and four-room flats fell 2.9 per cent and 1.8 per cent, respectively, but rentals for five-room and executive flats rose 0.4 per cent and 3.2 per cent, respectively. Year-on-year, April rents were down 2.3 per cent. Mr Lim noted that with private residential rents falling due to the supply of newly completed private homes, the HDB resale market has also come under some pressure. However, HDB rental rates are still more attractive than private rates and they have a strong support base, especially among those with a lower than $3,000 monthly budget, he said. And, as Singapores economy restructures to be less reliant on foreign labour, HDB flat rentals can be expected to moderate by around 5 per cent for the whole of this year. Source: Business Times – 9 May 2014
Posted on: Fri, 09 May 2014 02:36:42 +0000
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