HDB resale volume surged 573.6% in June

This marks as the highest monthly sales inked since July 2018.

HDB resale transactions skyrocketed 573.6% MoM and 26.7% YoY to 2,452 deals in June, according to an SRX report. About 40.3% of the volume comes from four-room, 26.3% from three-room, 24.1% from five-room, 7.4% from executive and the rest are from two-room.

“This is the highest monthly sales inked since July 2018 when 2,553 units were transacted. The market roared back to life as many buyers returned rapidly after the Circuit Breaker period ended in early June,” said Christine Sun, head of research & consultancy at OrangeTee & Tie.

However, Sun noted that the significant spike in sales volume may be attributed more to a backlog of transactions rather than a market recovery. “Some transactions were 'delayed' as certain procedures could not be finalised during the Circuit Breaker period. Some buyers were also waiting for the safe distancing measures to be eased before inspecting the units physically and making a purchase,” she said.

The overall sales transactions inked on a quarterly basis is still considered weak when compared to prior quarters, according to Sun. Using SRX data, 3,239 resale units were transacted in Q2, which is 41.5% lower than the 5,537 units sold in Q1. It is also less than the average number transacted from Q2 2019 and Q1, which stands at an average of 5,871 units resold per quarter.

Meanwhile, HDB resale prices inched up 0.8% YoY and dipped 0.2% MoM in June. The figure is also 13.2% lower than its peak in April. The slight increase was led by four-room prices that jumped 1.9% YoY. Five-room prices also edged up 1.2% YoY and executive room prices rose 0.4% YoY. On the other hand, prices for three-room flats slipped 1.1% YoY.

Non-mature estates prices increased 2.1% YoY, whilst mature estates prices slid by 1.2% YoY.

The highest transacted price for a resale flat in June is at $1.19m by a four-room unit at The Pinnacle@Duxton. In non-mature estates, the most expensive deal is at $865,000 by a five-room unit at Hougang Street 21.

There are eight HDB resale flats transacted for at least $1m in the same month.

Further, overall median transaction over X-value (T-O-X) is zero in June, representing a fall of $3,000 from May. HDB three-room also registered a zero median T-O-X, four-room posted a positive $1,000 T-O-X, whilst five-room’s and executive room’s T-O-X is at negative $1,600 and negative $2,000, respectively.

Bukit Batok posts the highest median T-O-X at positive $5,000 in June, followed by Woodlands at positive $4,000. On the other hand, Bukit Merah posted the lowest median T-O-X at negative $8,800, followed by both Pasir Ris and Jurong West at negative $5,000.