Last month’s transactions of resale HDB flats rose by a significant 16.5% with prices dipping slightly.
16.5% rise in resale HDB flats sales volume last month
Q2 is usually when property sales rev up and thus the rise could be a positive sign albeit an annually recurring one. The increase in the number of newer flats reaching the end of their minimum occupation period (MOP) and entering the market could also have boosted sales.
Compared to April last year, sales volume also rose 4.3%. 1,931 resale flats were sold in April, compared to the 1,657 in March.
Prices of resale HDB flats, however, fell a little. April’s resale prices were 0.4% lower than that of the previous month and 0.6% lower in a year-on-year comparison. From the peak of April 2013, resale HDB flat prices have since fallen 14%.
Movements of prices and transaction volume were varied across estates and flat types. In mature estates, resale HDB flat prices fell 0.7% while that in non-mature estates dipped only 0.1%. Prices of 3-room and executive flats both fell by 1.6% while that of 5-room flats dipped 0.2%.
Buyers of resale flats in Pasir Ris and Sengkang paid the highest average above the market value of $7,000 and $4,000 respectively while in Ang Mo Kio, Clementi and Queenstown, buyers paid an average of $7,500 and $7,000 below market value respectively.
In terms of flat-types, buyers of resale flats were most willing to pay above the market value of $3,000 and $2,000 for 5-room and executive flats respectively. Sellers of 3-room and 4-room flats, on the other hand, may find themselves selling an average of $2,000 and $1,000 below market prices.
CPF policy changes could help boost sales in coming months
News of the upcoming changes in the use of CPF monies for older HDB flats may encourage sales of such units, especially in mature estates.
Will demand for these older units increase in the upcoming months?
Some analysts are hopeful that the market will head towards the direction of healthier competition between older and newer resale flats.
For the moment, some sellers many have accepted lower prices for their resale flats to beat the rising competition from newer flats in non-mature estates. Concerns about the depreciating value of older or ageing resale flats may have also prompted some to sell at below-market values.