iwant2buyproperty
13-01-14, 18:14
The median price for a Housing and Development Board (HDB) flat has dipped for the first time in four years, according to data from the Singapore Real Estate Exchange (SRX).
The median valuation for an HDB unit in the fourth quarter of 2013 was $435,000 - a 0.7 per cent, or $3,000, drop from the previous quarter and the first decline since the fourth quarter of 2009, SRX said yesterday.
"This is in fact the first drop we registered after the global financial crisis, and it is pulled down by the lowering of the COV (cash over valuation) and overall resale prices coming down," said Jeremy Lee, co-founder of StreetSine, the company behind SRX.
"It is well within expectations that median HDB valuation price(s) fell in end-2013," said Ong Kah Seng, director at R'ST Research. This was because valuations depend on comparable recent flat sales, and resale flat prices have trended downwards in the second half of last year, he added.
SRX calculations show that overall resale flat prices fell 0.5 per cent q-on-q in the fourth quarter, after a 0.7 per cent dip in Q3.
HDB's resale price index has dipped for two straight quarters. Flash estimates indicated that prices fell 1.3 per cent quarter-on-quarter in Q4 2013, following a 0.9 per cent contraction in the third quarter.
December continued to reflect a weakening in the HDB resale market.
The number of transactions fell 9.6 per cent from November to an estimated 908 units. A series of measures imposed to cool the market and a sustained supply of new flats have combined to take their toll, analysts said.
About one in five, or 141 of 698 transactions, with valuation information as per SRX's record on Jan 8 were sold below valuation. This was largely led by sales in far-flung locations.
Woodlands saw the most number of "negative-COV" resales at 20, which accounted for 40 per cent of all resale transactions in that region.
Notably, more than half of resale units sold in Sengkang (57.1 per cent) and Punggol (57.9 per cent) last month fetched prices that were lower than valuation.
Accordingly, the COV cash premium continued the decline plummet that started at the beginning of last year. The median COV as at December was $5,000, according to SRX, compared with $8,000 the month before. This is also an 86 per cent plunge from the peak of $35,000 last January.
The general sentiment among analysts is that COVs will continue to head south in the near term, with flats in less ideal locations continuing to drag down the premium.
Rentals also softened in December, with the median rent at $2,300 per month, down from $2,350 in November. SRX only accounts for full unit rentals in its calculations.
For the full year 2013, SRX estimates that 14,220 resale HDB flats changed hands, down 32 per cent from the year before and the lowest in six years.
Eugene Lim, key executive officer at ERA Realty, said buyers could return as resale prices and COVs continue to fall, and with a lower supply of new three-room and larger flats this year.
HDB is tapering the supply of new flats this year after three years of ramped-up supply. In particular, it is cutting the 2014 pipeline of new three-room and larger flats by 18 per cent to 18,600 units.
Despite the subdued outlook, the number of salespersons in the industry remains fairly stable. The Council for Estate Agencies said yesterday that 31,783 salespeople have been registered as at Jan 1, compared with 31,040 a year ago.
That said, the number of new entrants has fallen to 3,336 from 4,567 at the start of 2012.
Source: Business Times – 10 January 2014
The median valuation for an HDB unit in the fourth quarter of 2013 was $435,000 - a 0.7 per cent, or $3,000, drop from the previous quarter and the first decline since the fourth quarter of 2009, SRX said yesterday.
"This is in fact the first drop we registered after the global financial crisis, and it is pulled down by the lowering of the COV (cash over valuation) and overall resale prices coming down," said Jeremy Lee, co-founder of StreetSine, the company behind SRX.
"It is well within expectations that median HDB valuation price(s) fell in end-2013," said Ong Kah Seng, director at R'ST Research. This was because valuations depend on comparable recent flat sales, and resale flat prices have trended downwards in the second half of last year, he added.
SRX calculations show that overall resale flat prices fell 0.5 per cent q-on-q in the fourth quarter, after a 0.7 per cent dip in Q3.
HDB's resale price index has dipped for two straight quarters. Flash estimates indicated that prices fell 1.3 per cent quarter-on-quarter in Q4 2013, following a 0.9 per cent contraction in the third quarter.
December continued to reflect a weakening in the HDB resale market.
The number of transactions fell 9.6 per cent from November to an estimated 908 units. A series of measures imposed to cool the market and a sustained supply of new flats have combined to take their toll, analysts said.
About one in five, or 141 of 698 transactions, with valuation information as per SRX's record on Jan 8 were sold below valuation. This was largely led by sales in far-flung locations.
Woodlands saw the most number of "negative-COV" resales at 20, which accounted for 40 per cent of all resale transactions in that region.
Notably, more than half of resale units sold in Sengkang (57.1 per cent) and Punggol (57.9 per cent) last month fetched prices that were lower than valuation.
Accordingly, the COV cash premium continued the decline plummet that started at the beginning of last year. The median COV as at December was $5,000, according to SRX, compared with $8,000 the month before. This is also an 86 per cent plunge from the peak of $35,000 last January.
The general sentiment among analysts is that COVs will continue to head south in the near term, with flats in less ideal locations continuing to drag down the premium.
Rentals also softened in December, with the median rent at $2,300 per month, down from $2,350 in November. SRX only accounts for full unit rentals in its calculations.
For the full year 2013, SRX estimates that 14,220 resale HDB flats changed hands, down 32 per cent from the year before and the lowest in six years.
Eugene Lim, key executive officer at ERA Realty, said buyers could return as resale prices and COVs continue to fall, and with a lower supply of new three-room and larger flats this year.
HDB is tapering the supply of new flats this year after three years of ramped-up supply. In particular, it is cutting the 2014 pipeline of new three-room and larger flats by 18 per cent to 18,600 units.
Despite the subdued outlook, the number of salespersons in the industry remains fairly stable. The Council for Estate Agencies said yesterday that 31,783 salespeople have been registered as at Jan 1, compared with 31,040 a year ago.
That said, the number of new entrants has fallen to 3,336 from 4,567 at the start of 2012.
Source: Business Times – 10 January 2014