HDB resale volume drops 5.1% MoM in May

May marked the second month of the decline in resale volume.

HDB resale volume dropped by 5.1% MoM to 2,156 flats, marking the second month of decline in transactions, data from 99.co-SRX showed.

On a year-on-year comparison, however, resale volume was 9.7% higher.

Property expert, Huttons said the decline could be attributed to the HDB May 2022 Sale of Balance Flats exercise, which "diverted a chunk of demand away from the resale market."

Huttons said buyers might have also been resistant to higher asking prices from sellers. 

The resale price of HDB flats rose for the 23rd straight month in May, inching up by 0.5% from April.

When compared to the same period last year, prices soared by 11%.

Going forward, PropNex said resale prices will likely "remain steady with moderate growth upside as home buyers may increasingly resist paying higher prices amid rising inflationary pressures, which will impact the cost of living."

Unlike prices, Huttons said sales volume will be on a download trajectory, forecasting a further slow down in transactions in June as "some buyers and sellers may travel overseas during the school holidays."