HDB resale volume jumps as prices extend slow decline

SINGAPORE — The volume of HDB resale flats transacted continued to pick up last month, with more buyers coming off the sidelines as prices extended their gradual monthly decline, showed a flash report from SRX Property yesterday.

An estimated 1,828 resale flats were sold last month, up 10.3 per cent from the 1,657 units transacted in March, and 13.5 per cent higher than the 1,610 units resold in April a year earlier. The volume represents a record high since the expanded Additional Buyer’s Stamp Duty and the Total Debt Servicing Ratio framework were implemented in 2013, said SRX Property.

Resale prices eased 0.1 per cent last month from March, maintaining the same rate of decline as a month earlier. According to the SRX Property data, resale prices have slipped 0.2 per cent year-on-year from April 2015, and fallen by 11.1 per cent since their peak in April 2013.

Last month’s decline was dragged by the price drop in five-room flats: Five-room resale flat prices fell 0.9 per cent from March and four-room flat prices remained unchanged, while three-room flat prices and executive apartment prices rose 0.6 per cent and 0.1 per cent, respectively.

Mr Eugene Lim, key executive officer at ERA Realty Network, expects overall HDB resale transactions for this year to rise to about 20,000 to 21,000 units from the 19,306 units recorded last year.

“Evidently, resale flats are well sought-after by buyers,” he said. “This is because resale flats have a shorter waiting time before buyers can move in, which caters to those with immediate housing needs. The various grants offered by HDB have played a part too, as they make a resale flat more affordable.” Mr Lim expects the HDB resale price decline to moderate to about 1 per cent this year from the 1.6 per cent drop last year.

“HDB resale prices have been very stable for the past year, with very minor monthly changes,” he said.

“We should continue seeing this trend for the coming months, as buyers remain conservative in their offers. Sellers have also been right-sizing their price expectations in order to minimise the time their property is on the market.”