HDB resale prices rise 0.1% in Aug compared to July 2018

HDB proprety

According to SRX’s price index, HDB resale prices rose 0.1% on month in August compared to July 2018.

The increase marks a reversal of 2 months of decline (-0.2% in May to June and -0.3% in June to July).

Nevertheless, resale prices are down 1.6% in Aug 2018 compared to the same period last year (2017 Aug index: 134, 2018 Aug index: 131.8), on the back of cooling measures imposed on the private property market which has hit sentiment in the entire housing market.

On a flash basis, HDB resale volume has also dropped in Aug 2018 compared to July 2018.

2,076 resale cases were registered in Aug 2018, compared with 2,550 in July 2018, representing a decline of 18.6%.

Compared to a year ago, volume has increased marginally at 6.1% (Aug 2017: 1,957 sold).

By property type, 3, 4 and 5 room HDB flats all saw a decline in prices compared to the previous month, with the largest being that of 3 room HDB flats (-0.4%) followed by 4 room flats (-0.2%) and 5 room flats (-0.1%).

Executive HDB flats bucked the trend by rising 3.5% on a monthly basis.

For 3 room HDB flats, there were monthly declines in prices for 9 out of 12 months over the last year.

Larger format HDB flats are more welcome by potential buyers, going by the prices in Aug 2018 compared with that one year ago.

By median resale prices, the highest priced transactions are found in Bukit Timah (S$779,044), followed by Bishan (S$610,944) and Bukit Merah (S$595,000).

The lowest median resale prices were found in Yishun (S$320,000), Ang Mo Kio (S$349,000) and Sembawang (S$356,444).

SRX also measures the Transaction Over X-Value (TOX) of HDB resale prices, which is an indication of how much a buyer is over-or under-paying the SRX property X-Value’s estimated market value. It is analogous to the property market’s term of Cash-Over-Valuation (COV).

The TOX in Aug 2018 is S$0, which is similar to the previous month’s value.

On a trend basis, the TOX has been climbing over the last 12 months, rising from a trough of -S$3,000 in Jan 2018.

This implies that a turning point in the HDB market by around the corner, with sellers beginning to be confident in asking for prices over valuation, and buyers increasingly willing to pay above SRX’s X-value to secure their desired home.

SRX index transaction over x value

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