While the number of resale HDB flats sold last month rose 7.5%, resale flat prices dipped 0.2%.
More than 2,000 resale HDB flats sold in May
2,075 resale HDB flats were sold in May, up from the 1,931 units transacted in April and the 1,754 units sold in May 2018.
Prices of executive flats fell the steepest by 0.6% while prices of 3-room, 4-room and 5-room resale HDB flats all declined by 0.2%.
Could the continued fall in prices, however slight, have attracted buyers to this market segment?
As more private homes enter the market this year and private home prices hold steady, will more home seekers be looking at resale flats?
The relaxation of the use of CPF monies for resale flats with less than 60 years left on their lease could possibly also boost sales though buyers are still mainly focusing on units close to their parents or adult children.
There may also be an increase in the number of HDB upgraders who will have to sell their resale units when they receive the keys to their new private homes.
This may also cause the HDB market to be more competitive which could, in turn, put a squeeze on prices and sales.
Fewer buyers paying above market value for resale flats
Resale flat buyers are also mostly paying market value for their units, with the average selling price at $1,000 below market value.
Larger flats such as 5-room flats or executive flats are selling at median prices of $1,000 and $5,000 above market valuation respectively.
Buyers of 3-room and 4-room flats are however paying $4,000 and $1,000 below market valuation.
Out of all the HDB estates where more than 10 transactions were recorded, buyers paid the highest median of $7,500 above market values for units in Geylang, followed by $7,000 in Choa Chu Kang.
In Bishan and Clementi however, buyers paid an average of $12,600 and $8,500 below market value for units here.