Why are Serangoon HDB homes being bought over market value?

The town has the highest median TOX of POSITIVE $11,000 in August.

Buyers of Serangoon HDB units are purchasing them above the market value, the Singapore Real Estate Exchange (SRX) revealed in an August report.

According to a press release, Serangoon has the highest median Transaction Over X-Value (T-O-X) of POSITIVE $11,000.

This was followed by a POSITIVE $6,000 reading in Bukit Panjang.

StreetSine Technology Group co-founder and CTO Jeremy Lee said the high TOX has been indicative of high demand in the area.

Those affected by the recent enbloc sales such as those of Serangoon Ville HUDC and Serangoon North Avenue 1 are looking for replacement homes, creating higher demand in the area.

Lee added, "For those affected by enbloc sales, they will need to purchase a replacement home, usually in the same vicinity. Flushed with cash from the enbloc sales, they are in the position to pay for higher prices when they opt for a HDB resale property."

Overall median T-O-X for the month was 0, which increased by $1,100 from July.

Among HDB towns with more than 10 resale transactions, Hougang had the lowest median T-O-X at NEGATIVE $7,000, followed by Pasir Ris at NEGATIVE $6,000.

"This means that majority of the buyers in these towns have purchased units below the computer generated market value," SRX said.

Photo from Wikimedia Commons, CC BY-SA 3.0