Almost 42.2% of the resale HDB flats sold last month were 4-room units. While last month’s sales volume of HDB resale flats slipped, prices inched up 0.1%.
Fewer resale flats sold but prices increased
1,921 resale flats were sold in August, a 9.4% fall from the month before.
In a year-on-year comparison, the number of flats sold was 7.6% lower in July this year. Resale flat prices were also 0.6% lower than that of August 2018. In comparison with the peak in April 2013, there is a 14.1% decline.
4-room flats were the most popular with buyers last month, with 5-room, 3-room and executive flats making up 23.7%, 23.4% and 8.3% of the transaction volume. The rest of the 2.4% were made up of 2-room flats and multi-generation flats.
Analysts are not surprised by the fall in transaction volume in August as it is usually lower in the month of the Hungry Ghost Festival. Despite the drop in sales volume, it was still above the 1,830 units 12-month average and analysts believe it is a positive sign that demand for resale HDB flats has remained resilient.
Prices expected to remain soft as competition heightens
Prices of resale flats, however, is expected to remain soft as competition heats ups as more flats reach the end of their minimum occupation period (MOP).
The market may still be tilting the way of buyers even though demand has increased after the revision of the rules regarding the use of CPF monies for the purchase of older flats.
In the upcoming months, about 1,511 flats will enter the HDB resale market and figures have shown that buyers are unlikely to pay above market value for resale flats.