HDB resale flat market – Dip in both prices and sales volume

The HDB resale flat market has been stabilising for a few months now, and prices and sales volume are starting to dip.

HDB flat prices in both mature and non-mature estates fall

While prices of resale flats in non-mature estates fell 0.3% in September, the fall in mature estates was steeper at 1.2%.

Could this signify the beginnings of a skew towards newer estates due to recent debates and concerns about the decreasing leases left on older units?

143 Mei Ling Street, Queensway. Picture: iProperty

Across the board, HDB resale flat prices fell 0.7% last month, and 2.1% in a year-on-year comparison.

Sales volume has also dipped 3.9% as 1,996 units changed hands last month. However, compared to the same period last year, sales volume has risen by 18.7%, perhaps boosted by purchases by displaced owners of properties sold in collective sales.

Buyers paid more for executive flats

Going by the sub-category of HDB resale flats, however, only executive flats seemed to have secured buyers who were willing to pay an average of $3,500 above market price. 3-room, 4-room and 5-room resale flats all saw buyers paying below market prices, from $2,000 to $2,100 on the average.

105 Clementi Street 12. Picture: iProperty

Geylang and Clementi seemed popular with buyers, with buyers paying $5,900 and $6,000 above the median market price. Bukit Merah, on the other hand, recorded the lowest below- average price buyers were willing to pay at $22,000.

The otherwise popular estate of Bishan also had buyers paying an average of $6,500 below market value. Though all these areas are considered mature estates, the latter may have fewer years left on their leases.

In terms of resale flat prices, 4-room flats had the largest increase of 0.6% while that of 3-room and 5-room flats fell 1.3%.

Despite buyers still paying more than market value for executive flats, their prices fell the steepest of 1.9%.

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