HDB Resale Market 'Resilient' In February Even Though Fewer Flats Change Hands

[SINGAPORE] The Housing Development Board (HDB) resale market maintained robust in February 2020 in spite of going through a seasonal dip since January.

Less HDB flats transacted in February 2020 compared with the previous month, as rates inched up by 0.7%.

Overall, 1,668 HDB resale units changed hands last month, 13.1% less than in January 2020, as shown in the flash estimates from property portal SRX on Thursday. The readings reversed the 3.3% rise in January from the preceding month of December 2019.

It was, however, 26.9% more than the 1,314 units transacted in February 2019.

Compared with February last year, prices rose 1.0% more last month. This shows some recovery which is good news for private home buyers looking for new launches too, and can find good remaining units within the Penrose Balance Units.

The prices of HDB flats in non-mature estates dipped by 0.3% while HDB flats in mature estates went up 1.3% compared with January 2020.

The most costly resale flat in February was a 5-room unit at Commonwealth Drive which transacted at S$1.1 million. This is very close to the One-North Eden Site. An executive maisonette along Hougang Street 21 sold for S$858,000, the highest rate in a non-mature estate.

There were also 5 other HDB resale flats which sold for at minimum of S$1 million in the prior month.

Resale HDB flat buyers in February “overpaid”, according to what SRX estimates to be the market price for the flats. The general median transaction over X-value (TOX) was a positive S$2,000 in February, a rise of S$2,500 as compared to January.

TOX calculates how much a purchaser is overpaying (positive value) or underpaying (negative value) for a residence according to SRX’s computer-produced market value. The info includes districts with more than ten resale transactions only.

HDB flats within Serangoon reported the highest median TOX at a positive S$14,000, next being flats in Geylang area, at positive S$7,000, in the region where the Penrose is located.

In the mean time, HDB flats in Marine Parade reported the lowest median TOX, at negative S$26,000, and followed by HDB flats in Bishan area, at negative S$24,500.

Miss Christine Sun, head of research at OrangeTee & Tie, noted that the public housing resale market maintained largely resilient in February despite the Lunar New Year festive period, which generally sees slower transaction activities, and concerns around the Covid-19 pandemic.

“Housing resale volume increased significantly as compared to the same timeframe a year ago, recording the best performing sales for February (timeframe) since 2017,” she commented.

“Currently home hunters still appear to be keen on purchasing properties in spite of the Covid-19 (situation). Any effect from the outbreak may possibly be short-term.”

An estimated 6,799 HDB flats will be entitled to join the HDB resale market in the coming 3 months as these homes approach their 5-year minimum occupation period.

Source: https://www.businesstimes.com.sg/real-estate/hdb-resale-market-resilient-in-february-even-though-fewer-flats-change-hands

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