The full article can be found in The Business Times, Real Estate Section, Page 11, 8 June 2018.
Prices of Housing & Development (HDB) resale flat rose 0.5 per cent in May from April, with 0.1 per cent price increase in HDB four-room resale flat, 0.5 per cent price increase in HDB five-room resale flat, and 1.5 per cent price increase in executive flats. However, prices of HDB resale flat dipped 1.8 per cent compared to May last year, and down 13.1 per cent from the peak in April 2013.
HDB resale volume continued its downward trajectory in May, where there was a 5.3 per cent drop in the number of resale flats in May from April and a 52 per cent dipped compared to the peak in May 2010. This may be due to buyers feeling discouraged given that Minister for National Development, Lawrence Wong, cautioned home buyers not to assume that all old HDB flats will automatically be eligible for the Selective En bloc Redevelopment Scheme (SERS).
The overall median Trasaction Over X-Value (TOX), which measures whether buyers are overpaying or underpaying for a flat, was up from negative S$1,000 in April to zero in May.
Flats in Bishan and Tampines posted the highest median TOX of S$12,000 each, which translates to high demand in that area. In contrast, Geyland and Serangoon posted the lowest median TOX of negative S$22,000 and negative S$8,000 respectively.
ZACD Executive Director and Chief Investment Officer, Nicholas Mak, noted that while this month’s flash estimates may not necessarily indicate the start of a market recovery, he expects resale prices to bottom out this year before recovering gradually as “the economy is doing well, and so is the job market”.
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