HDB resale prices remain flat in Dec

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http://www.straitstimes.com/singapor...in-flat-in-dec

HDB resale prices remain flat in Dec

Jan 8, 2016

Experts say market at new stable level but expect sluggish conditions to persist

Janice Heng


Housing Board resale prices stayed flat last month in confirmation of a stabilising market, with experts expecting sluggish conditions to continue into the year.

SRX Property flash figures released yesterday showed HDB resale prices staying unchanged from November to December, though fewer flats changed hands in the traditionally quiet year-end season. December's price changes were marginal across different flat types and estates. Prices rose 0.3 and 0.1 per cent respectively for three- and four-room flats, and fell 0.4 per cent for both five-roomers and executive flats.

Across mature estates, prices rose 0.2 per cent. In non-mature estates, they fell 0.2 per cent.

The full-year fall in SRX's resale price index was 1.3 per cent, comparable with the HDB's official flash estimate - released on Monday - of a 1.5 per cent full-year fall.

According to SRX, non-mature estates contributed more to the fall. Prices of flats there fell 1.6 per cent year on year, compared with 0.9 per cent in mature estates.

Experts said the latest figures confirmed the picture of a resale market that has been brought gently down to a new stable level. ERA Realty key executive officer Eugene Lim said: "It is evident that the market has experienced a soft landing."

The SRX resale index fluctuated marginally last year, with just two months in which prices changed by more than half a percentage point. Yet while official figures showed a 0.2 per cent rise in the last quarter of 2015, experts are cautious about predicting a bottoming-out.

"This new price uptick needs to have another quarter of confirmation," said R'ST Research director Ong Kah Seng. If this does not happen, he expects "flattish, stable resale flat prices" this year.

Mr Lim expects prices to continue their gradual decline this year, due to the slowing economy and rising interest rates.

With December being a traditionally slow month for transactions, resale volume fell 4.3 per cent with 1,404 flats changing hands, down from 1,467 units in November.

This was still up 8.4 per cent from a year earlier, suggesting that more buyers are turning to the resale market. Mr Lim added: "This could possibly be due to its increased price stability."

This year, 18,000 new build-to-order (BTO) flats are set to be launched, up from last year's 15,000.

But this may not shift much demand away from the resale market, according to Mr Ong.

"The profiles of buyers for resale flats and BTO flats are very different," he said. "Those who purchase a resale flat usually cannot afford to wait."

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http://www.businesstimes.com.sg/real...lume-falls-srx

HDB resale prices flat in Dec as volume falls: SRX

Confirmation of HDB's flash estimates this week that prices are stabilising

By Lee Meixian

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@LeeMeixianBT

Jan 8, 2016


FURTHER to HDB flash estimates showing the resale prices of public flats stabilising, SRX's latest data on Thursday confirms the trend of what consultants call a "soft landing".

HDB resale prices were unchanged in December 2015 compared to November, while resale volume fell slightly by 4.3 per cent.

There was mixed performance across the different flat sizes. Resale prices of three-room and four-room flats rose 0.3 per cent and 0.1 per cent respectively, while resale prices of five-room and executive flats both fell 0.4 per cent.

Year-on-year, prices have fallen 1.3 per cent from December 2014. They are down 10.7 per cent from the peak in April 2013.

ERA Realty key executive officer Eugene Lim said: "The small year-on-year decrease highlights that the resale HDB market has largely stabilised in terms of prices."

According to SRX Property data, resale prices fell 5.5 per cent in 2014, and 1.3 per cent in 2015.

Resale volume also fell slightly in the traditionally lull month of December, in line with expectations.

Some 1,404 resale flats were sold in December, 4.3 per cent fewer than the 1,467 transacted units in November.

Even so, when compared to a year ago, resale volume data shows more buyers returning to the resale market.

Year-on-year, resale volume increased 8.4 per cent, compared to the 1,295 units resold in December 2014. Mr Lim said this could be due to increased price stability and more reasonable asking prices by sellers.

But juxtaposed against the peak of 3,649 units in May 2010 at the height of the heated property cycle, resale volume has fallen 61.5 per cent.

Consultants continue to expect either a flat performance or a slight decline in HDB resale prices in 2016.

R'ST Research director Ong Kah Seng said: "Most buyers will be opportunistic buyers who will buy a flat after a long wait, and they will not relent to high prices asked by sellers.

"The yardstick for acceptable pricing is prices similar to recent transactions, which are published and updated frequently by HDB, after factoring in different characteristics such as storey difference.

"Buyers are going back to buying HDB resale flats again because they have waited for a while for prices to tumble but they didn't.

"HDB flats are still more for occupation than investment compared to private properties. So when prices consistently fall marginally, it will encourage more buyers who need a flat to purchase one," Mr Ong said.