Observations:
1. HDB resale prices slightly increased in April. HDB resale prices increased marginally by 0.2% in April 2015 compared to March 2015. The price increase was driven by HDB 3 and 4 Room Flats at 0.3% and 0.9% price increase respectively. The resale price for HDB 5 Room and Executive Flats decreased by 0.8% and 2.0% respectively.
According to the SRX Property Price Index for HDB Resale:
· Year-on-year, prices have dropped 6.0% from April 2014;
· Prices have declined 11.0% since the peak in April 2013;
· There is no revision for price change in March 2015.
According to the SRX Property Price Sub-Indices for HDB Resale:
· In April 2015, HDB resale prices increased by 0.6% in mature estates, but decreased by 0.2% in non-mature estates;
· Year-on-year, prices in mature estates have declined 4.0% from April 2014;
· Year-on-year, prices in non-mature estates have declined 7.4% from April 2014;
2. Resale volume increased. According to HDB resale data compiled by SRX Property, 1,610 HDB resale flats were sold in April 2015, a 19.3% increase from 1,349 transacted units in March 2015.
· Year-on-year, resale volume increased by 8.5% compared with 1,484 units resold in April 2014;
· HDB resale volume is April 2015 was the highest in recent 24 months;
· Resale volume is down 55.9% compared to its peak of 3,649 units in May 2010.
3. Overall median Transaction Over X-Value (T-O-X) remained negative. According to SRX Property, HDB prices continue to face downward pressure and negative market sentiment in April 2015. The median T-O-X for HDB measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value.
· Overall Median T-O-X was NEGATIVE $2,000 in April 2015, a $1,000 increase from NEGATIVE $3,000 in March 2015;
· Median T-O-X for HDB 4, 5, Room and Executive flats were negative while 3 Room flats saw a neutral median T-O-X.
4. Jurong East posted the highest median T-O-X. For HDB towns having more than 10 resale transactions with T-O-X in April 2015, Jurong East reported the highest median TOX of $7,000.
This means that majority of the buyers in these towns has purchased units above the computer-generated market value.
5. Among relatively active towns, Serangoon, Hougang and Pasir Ris posted the most Negative median T-O-X. Among HDB towns having more than 10 resale transactions with T-O-X in April 2015, the lowest median T-O-X were in Serangoon, Hougang and Pasir Ris at NEGATIVE $ 14,000, NEGATIVE $9,000, and NEGATIVE $7,000 respectively.
This means that majority of the buyers in these towns has purchased units below the computer generated market value.
Source: SRX (07 May 2015)