Rental volume grows as buyers wait for further price drops - PropertyGuru

More homeowners are deciding to sell their property before prices fall further and wait for heftier price drops before committing to buy — a trend that has resulted in higher rental volumes, said media reports.

According to statistics from HSR Research and the Urban Redevelopment Authority (URA), nearly 38,000 leasing agreements were inked for non-landed private houses between January and August 2014.

In comparison, only 34,000 and 35,000 and rental contracts were signed respectively during the same period in 2012 and 2013.

Additionally, this arrangement is logical, said experts. Apart from allowing house hunters to maximise the sales profits from their homes, it also enables them to take advantage of sliding rents due to a higher supply of completed houses.

Based on URA data, private home prices declined by one percent in Q2 2014 — its third consecutive quarter of sliding price, following the 1.3 percent and 0.9 percent dip in the previous quarters.

“We have noticed that many people are choosing to rent first and hoping that prices will come down later on. They sell off their properties and rent before getting their next home. We are also seeing people signing shorter leases because they are hoping for rents to come down,” noted Chris Koh, Director of Chris International.

However, the better leasing activity has not led to higher rents.

In the contrary, rents for private non-landed homes have dropped since Q4 2013. Over the same period, URA’s rental index slipped by 1.1 percent, while median prices decreased to $3.79 psf per month in Q2 2014.

Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg

Source: PropertyGuru (29 Sep 2014)

Widening price gap for home upgraders - AsiaOne

SINGAPORE - It is becoming harder than ever for Housing Board upgraders to make the leap to private property, despite softening prices.

The price gap between an HDB flat and one in a private condo has widened, hampering those who rely on resale proceeds to fund their new home - not least in the light of tougher home loan curbs.

A 2011 Goldman Sachs study found that the price gap in the first quarter of that year was $490 per sq ft, a record then. That means a 1,000 sq ft condominium unit would have cost $490,000 more than a resale HDB flat with the same floor area.

A five-room HDB flat is slightly larger than 1,000 sq ft.

New figures from the Singapore Real Estate Exchange suggest the gap has only widened since.

Their calculations put the gap in median resale prices at $383 per sq ft in the first quarter of 2011 but that had shot up to to $524 per sq ft by the second quarter of this year.

The gap is even wider for new private units, having risen from $556 per sq ft to $753 per sq ft.

These calculations were based on prices of HDB five-room flats and condominiums outside the central region, to reflect the typical upgrade.

"It does mean that private housing for HDB upgraders is becoming more unaffordable," said SLP International Property Consultants research head Nicholas Mak.

But the growing gap is unsurprising, given the different trends in private and public property, said experts.

The Urban Redevelopment Authority's resale price index shows that values of non-landed private property outside the central region have risen by 17.3 per cent overall since the first quarter of 2011.

The HDB's resale price index rose only about 12 per cent over the same period.

Several rounds of government cooling measures have begun to bite, and both markets are now on a decline. But public housing prices have been falling faster - contributing to the widening gap.

HDB prices started falling after the second quarter of last year, and have dropped 5.3 per cent since then. The private property index started falling from the third quarter, and has lost 3 per cent since.

R'ST Research director Ong Kah Seng does not see this as cause for alarm: "I think it is not a major concern now because in the years of 2010 to the first half of 2013, there were ample HDB upgraders... Many HDB upgraders have already fulfilled their dreams of upgrading."

Executive condominiums, which are bought as public housing but become fully private after 10 years, could also bridge the gap, as they are cheaper than private units, said Chris International director Chris Koh.

Mr Jedric Goh, 34, is willing to be even more flexible as he tests market interest for his five-room flat in Serangoon.

In this market, going private would be "quite tough", so he is not limiting his options that way.

"I'm looking at location instead of the type of property," said Mr Goh, who works in the finance industry.

janiceh@sph.com.sg

DREAM A LITTLE LONGER

It does mean that private housing for HDB upgraders is becoming more unaffordable.

- SLP International Property Consultants research head Nicholas Mak, on buyers having to fork out more

DREAM FULFILLED

Many HDB upgraders have already fulfilled their dreams of upgrading.

- R'ST Research director Ong Kah Seng, who does not see the growing price gap between HDB and condo units as cause for alarm

This article was published on Sep 24 in The Straits Times.

Wednesday, Sep 24, 2014

Janice Heng

The Straits Times

Source: AsiaOne (24 Sep 2014)

Punggol HDB Resale Price Range From Jan-14 to Aug-14 (Data Source: HDB)

Punggol Estate HDB Resale Transacted Price Range (Data Source: HDB)
	Jan-14		Feb-14		Mar-14
	Low	High	Low	High	Low	High
4-Room	$420,000.00	$505,000.00	$400,000.00	$533,000.00	$415,000.00	$524,000.00
5-Room	$480,000.00	$585,000.00	$480,000.00	$576,000.00	$445,000.00	$564,000.00
Executive	$593,000.00	$620,000.00	$595,000.00	$633,000.00	$610,000.00
	Apr-14		May-14		Jun-14
	Low	High	Low	High	Low	High
4-Room	$420,000.00	$530,000.00	$385,000.00	$529,000.00	$380,000.00	$500,000.00
5-Room	$470,000.00	$558,000.00	$465,000.00	$575,000.00	$420,000.00	$530,000.00
Executive	$545,000.00	$650,888.00	$600,000.00		$570,000.00
	Jul-14		Aug-14
	Low	High	Low	High
4-Room	$386,888.00	$500,000.00	$400,000.00	$498,888.00
5-Room	$415,000.00	$543,000.00	$420,000.00	$530,000.00
Executive	$580,000.00	$600,000.00	$570,000.00	$645,000.00

Number Of HDB Resale Transactions In Punggol Estate (D19) from Jan-14 to Aug-14

Punggol Estate Resale HDB Units Transacted (Data Source: HDB)
	Jan-14	Feb-14	Mar-14	Apr-14	May-14	Jun-14	Jul-14	Aug-14
4-Room	12	14	18	18	21	8	13	11
5-Room	9	12	22	20	16	18	21	22
Executive	2	4	1	3	1	1	3	4

From 10 March 2014 5pm onwards, only flat buyers or their salespersons can submit a request for valuation.The request can only be submitted after the sellers have granted the buyers an Option to Purchase.

Temporary extension of stay for resale flat from 22 July 2014.

September sales expected to spike - PropertyGuru

While last month’s new private home sales continued to weaken, new sales volume in September is expected to improve from July and August 2014, according to analysts.

For instance, OrangeTee expects sales volumes to be around 750 units to 850 units for September.

The market is likely to experience more deals soon, as anticipated projects such as Highline Residences, and 70 St Patrick’s are expected to launch in September while Marina One is expected to launch in early October.

According to media reports, Highline Residences by Keppel Land has sold over 80 percent of the first 160 units, and Marina One by M+S has also received good response during its private viewing last weekend. Kemmy Tan, CEO at M+S said toPropertyGuru, “Interest has been strong with over 800 visitors to our show gallery over the weekend.”

Alice Tan, Director & Head of Research at Knight Frank Singapore, said, “Developers are also likely to intensify efforts to launch projects with attractive offers to boost sales performance in view of a traditionally quiet year-end period ahead.”

She added, “Buying sentiment for new launches is likely to remain fairly muted in light of the current cooling measures.”

As 2014 approaches its last quarter, analysts believe new private home sales volume for the year is likely to hover around 8,000 to 9,000 units, falling just short of the 10,000-unit mark.

Additionally, PropNex CEO Mohamed Ismail Gafoor expects a cloud of stillness will continue to hang over the high-end segment. “The spotlight will be on more affordable mass and mid-tier market segments. The outlook for the private residential market will continue to be dismal for the rest of 2014 so long as the cooling measures and the TDSR framework remain in their current form,” he said.

Photo (by M+S Pte Ltd): Crowd at the Marina One show gallery on 14 September 2014

Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg

Source: PropertyGuru (16 Sep 2014)

Chart of the day: Drop in foreign home buyers - PropertyGuru

Although Singapore’s private residential scene was abuzz with foreign investors over the last decade, the slew of measures by the government to cool the red hot property market has chased many away from this group.

According to data published by JLL, there was more than a three-fold increase in the proportion of foreign purchases between 2000 and 2011.

Notably, foreigners only made up 4.1 percent of the market in 2000. But by 2011, the percentage of foreign buying had jumped to a record high of 17.5 percent of all private residential purchases on the island.

In a blog post, June Yang, Assistant Manager of Research for JLL Singapore, implied that the buying spree was boosted by Singapore’s solid position as a global financial hub, rising investment interest and more foreign capital.

However during the 2012 to 2014 period, their activity slipped to six to eight percent because of the higher stamp duty implemented by the government.

Despite the falling interest levels, Yang noted that the base of foreign nationals has widened over the years.

“Today over 50 different nationalities are active in the local property scene, cementing Singapore’s status as a global city with an attractive investment environment in Asia,” said Yang.

Comparatively, in 2000 there were 27 different nationalities with the majority from neighbouring countries such as Malaysia and Indonesia.

Percentage of foreign buyers in the private residential market has fallen

Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg

Source: PropertyGuru (11 Sep 2014)

Is leasehold or 99-year leasehold better for you? - SRX

SRX Property data allows us to establish the Land Tenure Rule for Investing in Singapore Property.  The rule states that, in general, freehold condominiums are more expensive than 99-year leasehold condominiums and they tend to underperform in gross rental yield.   When it comes to capital appreciation, it is a mixed bag.

The Land Tenure Rule means that it may not be worth paying a large premium for a freehold condominium if you do not plan to live in the home for a long period of time.  The rule also suggests that if you are a landlord, go 99-year leasehold.

Source: SRX (09 Sep 2014)

Enhanced upgrading and the 'flat' effect - AsiaOne

Flats that fall under the newly-enhanced upgrading programmes might be more attractive to buyers but, given today's muted market, experts do not expect much impact on their resale prices.

"When prices are overall heading south, resale flat values are unlikely to see significant premium over those which have yet to be upgraded," says R'ST Research director Ong Kah Seng.

SLP International Property Consultants head of research Nicholas Mak agrees, saying: "At best, it might slow down price declines."

On Wednesday, the Housing Board said it was speeding up one upgrading programme, extending another and introducing a third.

The Home Improvement Programme, which spruces up individual units, will benefit 50,000 flats a year, up from 35,000 before. The Neighbourhood Renewal Programme will cover flats built till 1995, thus including 100,000 more households, and the new Selective Lift 

Replacement Programme will replace 750 old lifts with modern ones.

Property agents say being selected for such programmes can make flats more attractive - but not immediately.

"It's a selling point," says ERA Realty agent Noel Lu. But that is only if the seller has already paid for the scheme, he adds. Flat owners are billed only after upgrading is completed.

The announcement of upgrading could improve a flat's "sale potential", but benefits are greater after the works are completed, says HSR International Realtors agent Karen Yeong.

And some buyers might shun flats where upgrading is not yet completed, as they fear dust and noise, says Dennis Wee Realty agent Mindy Soh.

In the 1990s, the Government pushed HDB upgrading as a way to improve or preserve the value of older flats. Studies by academics such as National University of Singapore professor 

Lum Sau Kim show that upgraded units did fetch higher prices.

But Suntec Real Estate Consultants director of research and consultancy Colin Tan points out that although resale prices have fallen, they are still at historic highs. "When prices are so high, (upgrading schemes) don't really make an impact."

Upgrading is more about benefiting residents who stay put, he adds.

Housewife Elyn Goh, 39, agrees. She does not plan to sell her three-room Yishun flat, which was upgraded under the Home Improvement Programme in April. And under the accompanying Enhancement for Active Seniors scheme, she and her husband, also 39, opted for senior-friendly features such as grab bars. "Just thinking ahead," she says.

janiceh@sph.com.sg

Additional reporting Yeo Sam Jo

Monday, Sep 15, 2014

Janice Heng

The Straits Times

Source: AsiaOne (15 Sep 2014)

My New Website - http://sgpropertyagt.wix.com/sgpropertyagt

I recently had created my own website using Wix.com
The website is to provide info for the estate that I'm focus for Condos/Apartments/Landed property and also some other listings that I may have.
Will also include Events that we will have such as Open House.
Thou it is just a simple site and it has alot more to be improved, I hope that the website can be useful to you.
As time goes, I'll try to improve on my website.

Feel free to visit
http://sgpropertyagt.wix.com/sgpropertyagt

Extension of stay eases HDB sellers' worries - PropertyGuru

In August, 176 flat sellers have applied for an extension under HDB’s new rule which allows them to temporarily reside in the flat they just sold, said media reports

Introduced in July, the temporary extension of stay for up to three months aims to help sellers who are transitioning to their new homes, such as those awaiting funds from the sale of their current flats, or those who need more time to complete the renovation at their new place. Previously, sellers had to move out immediately after relinquishing the keys.

The seller and buyer are required to fill out a form for the extension, with supporting documents such as an Option to Purchase that has been exercised and a valid Sale and Purchase Agreement. At the time of the resale application, the form has to be submitted to HDB for approval.

However, details such as the seller’s period of occupation and buyer’s monetary compensation are purely in the hands of both parties. This means HDB does not need to know the provisions of the agreement and will not interfere if a dispute arises.

The policy is expected to benefit about 15 percent of the total resale transactions each year, or around 2,700 households.

Even before the new rule was imposed, this arrangement was not unusual, said PropNex. Previously, the parties involved keep it a secret, but because the option is now official, many sellers will likely take advantage of it.

“We have witnessed many mutual agreements on the 23rd hour falling flat, the buyers changing their minds and people becoming homeless,” said PropNex CEO Mohamed Ismail Gafoor.

“Now that this scheme is in place, I think this will create a greater number of people who will consider going through the proper process,” he added.

Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg

 Source: PropertyGuru (12 Sep 2014)

How to invest in property - AsiaOne

You want to buy a home that you can sell at a profit years from now, or pass on to your kids as an asset. Here's how to pick a winner.

Suss Out The Neighbourhood

If you've got your eye on an area, research what developments will be taking place over the next 30 years. Does the government plan to build a new MRT line nearby? Will there be new malls and schools coming up? These things could add value to the property.

If you'll only be able to invest in a few years' time, investigate up-and-coming districts.

For instance, with the government planning to decentralise the CBD, we'll see more offices and industrial hubs shift to places like Jurong East, Woodlands and Seletar Aerospace Park.

This could make these areas more popular among homeowners. Get more information from the Draft Master Plan 2013 and the Land Transport Master Plan 2013 - these can be found on the Urban Redevelopment Authority (URA) and the Land Transport Authority websites respectively.

Spot the trends

If you must hedge your bets, go for smaller properties - think a two- or three-room HDB flat, or a private property under 500 sq ft.

These might be easier to sell or rent out in the future. That's because experts predict that, in the next 20 to 30 years, buying trends will lean towards smaller, more affordable homes.

The per-square-foot price of properties has surged over the last three years and is predicted to increase even more, making affordability an even bigger concern in the future.

Compare prices in the area

Before buying your home, find out the transacted prices of nearby properties. You can ask a real estate agent, or look up the information on the URA and the Housing & Development Board websites (under their E-services section).

If the value of these properties has been going up, it means the value of yours may likely rise in the near future.

Her World

Saturday, Sep 13, 2014

Source: AsiaOne (13 Sep 2014)

Property curbs may be eased only in H2 2015: Report - AsiaOne

Any relaxation of Singapore's property curbs, such as stamp duties and borrowing limits, is likely only in the second half of next year, Bank of America Merrill Lynch said in a report yesterday.

By then, some pain may have been felt.

Home prices would probably have declined by more than 10 per cent by the middle of next year while households would have cut their debt levels sufficiently, said Bank of America Merrill Lynch economist Chua Hak Bin.

That is also when interest rates in the United States and mortgage rates here might begin rising.

"An earlier relaxation would probably require property prices to fall more sharply or the economy to slip into a recession," Mr Chua added.

Property prices are set to fall 20 per cent by 2016 because of oversupply of new units, Bank of America Merrill Lynch had said in a separate report last Friday.

Other market observers were more circumspect about when the property curbs might be relaxed.

OCBC economist Selena Ling said: "What we are seeing today is a very modest slide (in prices). If mortgage rates adjust, then it's possible that prices would slide further and faster but there is not much clarity on when the US will raise its interest rates."

Mr Colin Tan, director of research and consultancy at Suntec Real Estate Consultants, agreed.

"It is possible that property prices could fall 10 per cent by the middle of next year, but any prediction of a significant drop in property prices is premature until the interest rate situation in the US is very clear," he said.

Dr Chua said there are already some indications that the property market is stabilising and that the Government's cooling measures of recent years are working.

A stress test of banks by regulators shows that the banking system remains resilient against various stress scenarios.

Household balance sheets are also in better shape with the growth in household debt moderating.

However, he noted, the Monetary Authority of Singapore argued in July that it was too early to unwind cyclical property cooling measures as risk factors have not changed.

Cyclical measures, such as loan-to-value borrowing limits and stamp duties, are designed to prevent households from over-extending themselves when buying property during periods of rapid price increases or elevated prices.

Property prices remain elevated. After having risen 30 per cent over the last five years, they are down by just 3 per cent over the last three quarters. Global interest rates are still at historic lows.

"Relaxing property measures in the current easy liquidity environment may set off another spiral of price increases," Dr Chua noted.

He also outlined how other government policies could dampen the property market.

The restructuring process and stricter foreign worker and immigration policies are lowering the economy's potential growth, while curbs on the inflow of working-age foreigners will exacerbate Singapore's ageing demographics.

While he does not expect the Government to reverse course on these policies, a pause "may be in order", as companies, particularly small and medium-sized enterprises, are having trouble adjusting to the speed of the tightening.

yasminey@sph.com.sg

Friday, Sep 12, 2014

Yasmine Yahya

The Straits Times

Source: AsiaOne (12 Sep 2014)

Resale prices of private homes up 0.4% in August: Singapore Real Estate Exchange - AsiaOne

SINGAPORE - Resale prices of non-landed private homes rose a slight 0.4 per cent on flat sales volume in August, compared with July.

Here is the flash report from Singapore Real Estate Exchange:

Non-landed Private Residential Resale prices up slightly on low sales volume. Non-landed Private Residential Resale prices up slightly by 0.4 per cent in August compared to July 2014. Non-landed Private Residential in CCR and RCR drove the overall index up with price gains of 4.8 per cent and 1.5 per cent, respectively. In comparison, resale prices of units in OCR decreased 1.1 per cent.

According to the SRX Non-landed Private Residential Price Index:

· Year-on-year, prices have dropped 5.0 per cent from August 2013;

· Prices have declined 5.3 per cent since the recent peak in Jan 2014.

Resale volume remained flat. According to Non-landed Private Residential Resale data compiled by SRX Property, an estimated 418 Non-landed Private Residential units were resold in August, levelled with 417 transacted units in July.

· Year-on-year, resale volume improved 1.2 per cent compared with 413 units resold in August 2013;

· Resale volume is down 79.6 per cent compared to its peak of 2,050 units resold in April 2010.

Rental volume increased by 3.6 per cent. An estimated 3,539 Non-landed Private Residential units were rented in August 2014. This is a 3.6 per cent increase from 3,416 units rented in July 2014.

· Year-on-year, rental volume in August 2014 is 25.0 per cent higher compared with 2,831 units rented in August 2013.

Rental prices continued to fall. According to the SRX Non-landed Private Residential Price Index for Rentals, rents posted a drop of 0.6 per cent in August compared to July. This marks the 7th consecutive decline in prices. Non-landed Private Residential units in CCR and OCR saw rent decreases of 2.0 per cent and 1.1 per cent respectively, while units in RCR posted an increase in rent of 0.4 per cent.

· Year-on-year basis, rents in August 2014 are down 6.6 per cent from August 2013.

Overall median Transaction Over X-Value (T-O-X) remains negative. According to SRX Property, Non-landed Private Residential prices continue to face downward pressure and negative market sentiment. The median T-O-X for Non-landed Private Residential measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value.

· T-O-X was NEGATIVE $10,000 in August 2014, up from -$20,000 in July 2014;

· The median T-O-X has been negative since Oct 2013.

Districts 11, 18 and 25 with relatively high activity and Positive median T-O-X. For districts with more than 10 resale transactions in August 2014, district 11 (Watten Estate, Novena, Thomson) had the highest median TOX of $50,000, followed by $16,000 and $9,000 posted by district 18 (Tampines, Pasir Ris) and district 25 (Kranji, Woodgrove), respectively.

This means that majority of the buyers in these districts purchased units above the computer-generated market value.

Among relatively active districts, district 15 posts the most Negative median T-O-X. Among districts with more than 10 resale transactions, the lowest median T-O-X were in district 15 ( Katong, Joo Chiat, Amber Road), district 23 (Bukit Panjang, Choa Chu Kang) and district 16 (Bedok, Upper East Coast), at NEGATIVE $ 40,000, NEGATIVE $38,000, and NEGATIVE $30,000, respectively.

This means that majority of the buyers in these districts has purchased units below the computer-generated market value.

Monday, Sep 08, 2014

Lee Mei Xian

The Business Times

Source: AsiaOne (8 Sep 2014)

HDB resale prices slump for 7th straight month: S'pore Real Estate Exchange - AsiaOne

Overall prices slipped by 1.1 per cent last month compared to July, according to Singapore Real Estate Exchange (SRX) flash figures on Thursday (Sept 4). Compared to the peak in April last year, prices have gone down by 8.6 per cent.

Here is the press release from SRX:

HDB resale prices drop for 7th consecutive month. HDB resale prices slipped 1.1 per cent in August compared to July 2014. HDB 3 and 4 -room flats drove the overall index down with declines of 2.0 per cent and 0.9 per cent, respectively. In comparison, 5 - Room and Executive prices increased 0.8 per cent and 1.5 per cent, respectively.

According to the SRX HDB Price Index:

Year-on-year, prices have dropped 7.1 per cent from August 2013; Prices have declined 8.6 per cent since the peak in April 2013; August 2014 prices mark a new 31-month low since Jan 2012.

Resale volume slipped slightly. According to HDB resale data compiled by SRX Property, 1,327 HDB resale flats were sold in August, a 1.1 per cent decrease from 1,342 transacted units in July.

Year-on-year, resale volume dropped 3.3 per cent down compared with 1,372 units resold in August 2013; Resale volume is down 63.6 per cent compared to its peak of 3,649 units in May 2010.

Rental volume flat. An estimated 1,550 HDB flats were rented in August 2014. In comparison, 1,548 units were rented in July 2014.

Year-on-year, rental volume in August 2014 is 10.7 per cent higher compared with 1,400 units rented in August 2013.

Rental prices remained flat. According to the SRX HDB Price Index for Rentals, rents posted a small increase of 0.2 per cent in August compared to July. HDB 4 and 5-room flats both saw rent increases of 0.9 per cent, while 3-room and Executive flats posted declines in rent of 0.7 per cent and 1.6 per cent, respectively.

Year-on-year basis, rents in August 2014 are down 5.6 per cent from August 2013.

Overall median Transaction Over X-Value (T-O-X) remains negative. According to SRX Property, HDB prices continue to face downward pressure and negative market sentiment. 

The median T-O-X for HDB measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value

T-O-X remained at NEGATIVE $3,000 in August 2014; The median T-O-X has been negative since May 2013.

Bukit Merah ONLY town with relatively high activity and a POSITIVE median T-O-X. For HDB towns with more than 10 resale transactions in August 2014, only Bukit Merah reported a positive median TOX of $8,000.

This means that majority of the buyers in Bukit Merah has purchased units above what other buyers who came before paid for similar units.

Among relatively active towns, Bukit Panjang posts the most Negative median T-O-X. Among HDB towns with more than 10 transactions, the lowest median T-O-X were in Bukit Panjang, Ang Mo Kio, and Hougang, at NEGATIVE $ 12,800, NEGATIVE $8,000, and NEGATIVE $6,100, respectively.

This means that majority of the buyers in these towns has purchased units below what other buyers who came before paid for for similar units.

Thursday, Sep 04, 2014

Yeo Sam Jo

The Straits Times

Source: AsiaOne (04 Sep 2014)

HDB resale prices slump for 7th straight month: S'pore Real Estate Exchange - AsiaOne

Overall prices slipped by 1.1 per cent last month compared to July, according to Singapore Real Estate Exchange (SRX) flash figures on Thursday (Sept 4). Compared to the peak in April last year, prices have gone down by 8.6 per cent.

Here is the press release from SRX:

HDB resale prices drop for 7th consecutive month. HDB resale prices slipped 1.1 per cent in August compared to July 2014. HDB 3 and 4 -room flats drove the overall index down with declines of 2.0 per cent and 0.9 per cent, respectively. In comparison, 5 - Room and Executive prices increased 0.8 per cent and 1.5 per cent, respectively.

According to the SRX HDB Price Index:

Year-on-year, prices have dropped 7.1 per cent from August 2013; Prices have declined 8.6 per cent since the peak in April 2013; August 2014 prices mark a new 31-month low since Jan 2012.

Resale volume slipped slightly. According to HDB resale data compiled by SRX Property, 1,327 HDB resale flats were sold in August, a 1.1 per cent decrease from 1,342 transacted units in July.

Year-on-year, resale volume dropped 3.3 per cent down compared with 1,372 units resold in August 2013; Resale volume is down 63.6 per cent compared to its peak of 3,649 units in May 2010.

Rental volume flat. An estimated 1,550 HDB flats were rented in August 2014. In comparison, 1,548 units were rented in July 2014.

Year-on-year, rental volume in August 2014 is 10.7 per cent higher compared with 1,400 units rented in August 2013.

Rental prices remained flat. According to the SRX HDB Price Index for Rentals, rents posted a small increase of 0.2 per cent in August compared to July. HDB 4 and 5-room flats both saw rent increases of 0.9 per cent, while 3-room and Executive flats posted declines in rent of 0.7 per cent and 1.6 per cent, respectively.

Year-on-year basis, rents in August 2014 are down 5.6 per cent from August 2013.

Overall median Transaction Over X-Value (T-O-X) remains negative. According to SRX Property, HDB prices continue to face downward pressure and negative market sentiment. 

The median T-O-X for HDB measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value

T-O-X remained at NEGATIVE $3,000 in August 2014; The median T-O-X has been negative since May 2013.

Bukit Merah ONLY town with relatively high activity and a POSITIVE median T-O-X. For HDB towns with more than 10 resale transactions in August 2014, only Bukit Merah reported a positive median TOX of $8,000.

This means that majority of the buyers in Bukit Merah has purchased units above what other buyers who came before paid for similar units.

Among relatively active towns, Bukit Panjang posts the most Negative median T-O-X. Among HDB towns with more than 10 transactions, the lowest median T-O-X were in Bukit Panjang, Ang Mo Kio, and Hougang, at NEGATIVE $ 12,800, NEGATIVE $8,000, and NEGATIVE $6,100, respectively.

This means that majority of the buyers in these towns has purchased units below what other buyers who came before paid for for similar units.

Thursday, Sep 04, 2014

Yeo Sam Jo

The Straits Times

Source: AsiaOne (04 Sep 2014)