HDB resale prices up 1.5% in July

Analysts noted that the figure reiterates the HDB resale market’s stability.

HDB resale prices rose 1.5% YoY and 0.4% MoM in July, according to SRX data. From its April 2013 peak, prices are 12.8% lower.

Prices for most room types are higher than a year ago. Three-room prices inched up 0.5% YoY, four-room prices by 2.1% and five-room by 1.7% YoY. Meanwhile, prices for executive flats remained unchanged over the same period.

Non-mature estates prices rose 3.1% YoY, whilst mature estates prices dipped by 0.9% YoY.

“We believe the HDB resale prices have likely bottomed and will remain relatively stable for the rest of the year, supported by healthy owner-occupier demand. The fact that prices held up in recent quarters—amidst the pandemic—also reflects the strength of the HDB resale market, where sellers still have sufficient financial holding power and are generally able to maintain their asking prices,” commented Wong Siew Ying, head of research and content at PropNex.

July also recorded 2,470 HDB resale transactions, representing a 0.7% MoM and 15% YoY jump. Christine Sun, head of research and consultancy at OrangeTee & Tie, noted that this is the highest monthly sales inked since July 2018 when 2,553 units were transacted.

“Sales volume remained high last month as the market is still clearing a backlog of cases that were accumulated during the circuit breaker period. Some sales transactions could only be completed or finalised after the circuit breaker period when the HDB hub and branches were reopened,” she added.

Breaking down by room types, 40.1% of the volume in July came from HDB four-room, 25.1% from three-room, 24.3% from five-room and 7.8% from executive. The rest are from two-room and one-room.

The highest transacted price for a resale flat in the month is at $1.09m by a four-oom unit at The Pinnacle@Duxton. Amongst non-mature estates, the highest transacted price is at $785,000 by a five-room unit at Parkland Residences and an executive unit at Toh Guan Road.

There were nine HDB resale flats transacted for at least $1m.

“This opened up the possibility for the number of such million-dollar transactions to surpass the 13 deals done in Q1 and 11 transactions in Q2, according to figures from Data.gov,” Wong said.

Overall median transaction over X-value (T-O-X) is at positive $1,000 in July 2020. This represented an increase of $1,000 from June. HDB three-room registered a positive $2,500 median T-O-X. Both four-room and five-room recorded a positive $1,000, whilst executive median T-O-X is at positive $3,000.

Yishun posted the highest median T-O-X at positive $9,000 in July, followed by Ang Mo Kio and Bukit Batok at positive $7,000. On the other hand, Sengkang and Tampines saw the lowest median T-O-X at negative $3,000, followed by Kallang/Whampoa at negative $2,500.