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07-07-23, 11:04
HDB resale volume down 17.8%, prices up 0.6% in June: SRX, 99.co
Jul 06, 2023
HOUSING and Development Board (HDB) resale prices continued to inch up in June by 0.6 per cent compared with the previous month, while transaction volume dived 17.8 per cent.
Year on year, overall HDB resale prices were 7.3 per cent higher for the month of June, flash data from real estate portal SRX and property agency 99.co showed on Thursday (Jul 6).
In June, some 1,858 resale flats changed hands, compared with 2,260 in the previous month. While June is a typically quiet sales month with the school holiday season taking most families out of the country, sales were also lower year on year, by about 13 per cent compared to June 2022.
PropNex Realty’s chief executive officer Ismail Gafoor said that the muted price increase was likely “due to the subdued transactional activity during the month as well as price resistance setting in among buyers”.
A flood of new build-to-order (BTO) flats being made available, with some in highly desirable locations, may have also diverted homebuyers away from the resale market, analysts said.
The decline could also be due to a new requirement kicking in from May. Buyers now have to provide an HDB Flat Eligibility letter for HDB to assess their housing and financing options before they purchase a flat, said Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie. Not all buyers may have been aware of the ruling, she said, which may have held back their purchase.
Resale prices rose on a month-on-month basis for mature estates by 0.7 per cent and non-mature estates by 0.6 per cent. Overall, prices are about 7 per cent to 8 per cent higher year on year.
Most of the units transacted in June came from non-mature estates, which made up 61.7 per cent of resale volume. By flat type, compared with May, prices of three-room flats increased by 0.4 per cent in June, four-room flats were up by 0.8 per cent, and five-room flats rose by 1 per cent. Meanwhile, prices of executive flats declined by 1.1 per cent.
In June, 34 or 1.8 per cent of all resale deals were transacted above the million-dollar mark – the same as the number sold in May. The highest transacted price in June was for a four-room adjoining flat at Moh Guan Terrace, which was sold for S$1.5 million. This breached the previous record price by 5.8 per cent.
“With condominium prices at an all-time high, high-income cost-conscious buyers are finding respite in relatively affordable HDB flats,” said Luqman Hakim, chief data and analytics officer at 99.co.
As HDB will be launching 6,700 BTO flats in the August sales exercise, Huttons Asia’s CEO Mark Yip expects this may draw more buyers away from the resale market due to the shorter waiting time for some of the projects.
“The increase in both BTO and resale flat supply may moderate prices in HDB resale flats to not more than 5 per cent in 2023. HDB resale flat transactions are estimated to be in the range of 24,000 to 26,000 in 2023,” said Yip.
https://www.businesstimes.com.sg/property/hdb-resale-volume-down-178-prices-06-june-srx-99co
Jul 06, 2023
HOUSING and Development Board (HDB) resale prices continued to inch up in June by 0.6 per cent compared with the previous month, while transaction volume dived 17.8 per cent.
Year on year, overall HDB resale prices were 7.3 per cent higher for the month of June, flash data from real estate portal SRX and property agency 99.co showed on Thursday (Jul 6).
In June, some 1,858 resale flats changed hands, compared with 2,260 in the previous month. While June is a typically quiet sales month with the school holiday season taking most families out of the country, sales were also lower year on year, by about 13 per cent compared to June 2022.
PropNex Realty’s chief executive officer Ismail Gafoor said that the muted price increase was likely “due to the subdued transactional activity during the month as well as price resistance setting in among buyers”.
A flood of new build-to-order (BTO) flats being made available, with some in highly desirable locations, may have also diverted homebuyers away from the resale market, analysts said.
The decline could also be due to a new requirement kicking in from May. Buyers now have to provide an HDB Flat Eligibility letter for HDB to assess their housing and financing options before they purchase a flat, said Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie. Not all buyers may have been aware of the ruling, she said, which may have held back their purchase.
Resale prices rose on a month-on-month basis for mature estates by 0.7 per cent and non-mature estates by 0.6 per cent. Overall, prices are about 7 per cent to 8 per cent higher year on year.
Most of the units transacted in June came from non-mature estates, which made up 61.7 per cent of resale volume. By flat type, compared with May, prices of three-room flats increased by 0.4 per cent in June, four-room flats were up by 0.8 per cent, and five-room flats rose by 1 per cent. Meanwhile, prices of executive flats declined by 1.1 per cent.
In June, 34 or 1.8 per cent of all resale deals were transacted above the million-dollar mark – the same as the number sold in May. The highest transacted price in June was for a four-room adjoining flat at Moh Guan Terrace, which was sold for S$1.5 million. This breached the previous record price by 5.8 per cent.
“With condominium prices at an all-time high, high-income cost-conscious buyers are finding respite in relatively affordable HDB flats,” said Luqman Hakim, chief data and analytics officer at 99.co.
As HDB will be launching 6,700 BTO flats in the August sales exercise, Huttons Asia’s CEO Mark Yip expects this may draw more buyers away from the resale market due to the shorter waiting time for some of the projects.
“The increase in both BTO and resale flat supply may moderate prices in HDB resale flats to not more than 5 per cent in 2023. HDB resale flat transactions are estimated to be in the range of 24,000 to 26,000 in 2023,” said Yip.
https://www.businesstimes.com.sg/property/hdb-resale-volume-down-178-prices-06-june-srx-99co