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Thread: HDB resale prices dip, delaying market rebound

  1. #1
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    Default HDB resale prices dip, delaying market rebound

    http://www.straitstimes.com/singapor...market-rebound

    HDB resale prices dip, delaying market rebound

    Sep 9, 2016

    0.7% fall reverses slight rise in July, continues trend of flat prices over the past year

    Yeo Sam Jo


    Resale prices for Housing Board (HDB) flats dipped by 0.7 per cent in August over the previous month, reversing the slight rise in July and further delaying a market rebound.

    August HDB resale prices were also down 0.2 per cent from a year ago, according to latest flash figures from SRX Property.

    Last month's price dip was led by that of four-room flats, which slid 1 per cent from July, as well as three- and five-room flats, which both inched down 0.6 per cent. Executive flat prices rose 0.8 per cent.

    The overall price dip in August was seen across flats in mature and non-mature estates, which decreased by 0.4 per cent and 1 per cent respectively.

    Since their peak in April 2013, HDB resale flat prices have slid 11.5 per cent, SRX Property data showed.

    This continues the trend of relatively flat prices over the past year, which experts said dispel any hope of an imminent price surge.

    Noting that the August prices simply corrected the shifts in July, R'ST Research director Ong Kah Seng said: "Any price rebound is unsustainable as overall public housing sentiments remain weak."

    Chief executive of International Property Advisor, Mr Ku Swee Yong, said the sombre economic outlook, affected by recent developments such as Brexit, will continue to keep a lid on prices.

    Still, the volume of flats that changed hands last month went up by almost a fifth - from 1,573 units in July to 1,879 flats in August. This is about 30 per cent more than the 1,447 units resold a year ago.

    Research head for SLP International Property Consultants Nicholas Mak, however, noted that the resale volume simply reverted to levels in June and May, which each saw a little over 1,800 units transacted.

    An increase in transactions in August is nonetheless unusual, given that the month coincides with the Hungry Ghost Festival, which is traditionally unpopular with superstitious buyers.

    Mr Ong said some transactions could have come from "opportunity buying", in which buyers were offered low prices by owners in a hurry to sell their flats.

    "Some owners might be trying to offload their current flats because their new flats or executive condominiums have been completed.

    "Most buyers have reservations during the seventh lunar month, but if prices are attractive it's a good chance for them to get good deals."

  2. #2
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    Default HDB resale volume up 19.5% in August: SRX

    http://www.businesstimes.com.sg/real...-in-august-srx

    HDB resale volume up 19.5% in August: SRX

    Prices slip 0.7% with much of the drag coming from 3-room and 5-room flats

    By Lynette Khoo

    [email protected]

    @LynetteKhooBT

    Sep 9, 2016


    HDB resale transactions in August rose 19.5 per cent to 1,879 flats, compared to a month ago as prices slipped 0.7 per cent, according to estimates by SRX Property.

    The price dip reversed a 0.7 per cent month-on-month increase in HDB resale prices in July in a continued streak of monthly fluctuations seen this year.

    R'ST Research director Ong Kah Seng noted that the HDB resale market now reflects a "compromise situation" between buyers and sellers, with the price levels now more closely matching buyers' affordability and willingness to purchase.

    "August is a correction of prices to a long-established stability - any monthly increase is usually followed by a decrease in subsequent month, and vice versa," Mr Ong observed.

    The lower HDB resale prices in August could also be due to the possibility that owners who chose to sell in the lull lunar seventh month are usually more desperate; perhaps, their new executive condominiums (ECs) or build-to-order flats have been completed a while and they must offload their existing flat six months after completion of the new flat or EC, Mr Ong posited.

    The drag in HDB resale prices in August came mainly from HDB three-room and five-room flats, each marking a 0.6 per cent decline from a month ago, after inching up 0.6 per cent in July.

    Non-mature estates marked a steeper price drop of one per cent in August, compared to mature estate's 0.4 per cent decline.

    From a year ago, resale volumes were 29.9 per cent higher while resale prices were still 0.2 per cent below from August 2015's level.

    Compared to respective peaks, resale volumes were still 48.5 per cent below the peak of May 2010, while resale prices were 11.5 per cent down from the peak in April 2013.

    But Mr Ong believes that most of the owners do not make losses from their resales in recent times. He is also expecting more four-room and five-room HDB flats to be put up for resale this year, as there will be substantial private residential properties and ECs completing.

    Some 99 per cent of transactions are captured by the time SRX Property's HDB resale flash report is published - the most comprehensive among its flash reports. This is based on a study of monthly averages for the past one year.

    About 82 per cent of monthly transactions are captured by the time the flash report for private non-landed resale prices is released. Flash reports on rentals by SRX Property typically capture around 80 per cent of the month's transactions on average at the time of the reports' publication.

    "Going into the remaining months of 2016, HDB resale prices are expected to further stabilise but unlikely to rise notably," Mr Ong 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."

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    This is otherwise known as the HDB upgraders' leap of faith.

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