HDB Resale Prices Trend Lower in October; Volumes 18% Higher Month-on-Month

1.HDB resale prices decrease by 0.2% in October 2019 over September 2019. HDB 4 Room and 5 Room experienced price decreases of 0.9% and 0.6%, respectively. Meanwhile, 3 Room and Executive prices increase by 0.5% and 1.1%, respectively. Mature Estates prices increase 0.2% while Non-Mature Estates prices decrease by 0.5%, as compared to September 2019.

According to the SRX Property Price Index for HDB Resale:

• Prices in October 2019 are 0.1% higher from preceding year.
• October 2019 prices are 14.3% lower than the peak in April 2013.
• Year-on-Year, Non-Mature Estates prices increase 1.1% while Mature Estates prices decrease 1.3%.

2. 2,213 HDB resale transactions in October 2019, representing an 18.0% increase from September 2019.

• Year-on-year, resale volume in October 2019 is 10.6 % higher than the previous year.
• Breaking down by room types, in October 2019, 40.8% of the volume comes from HDB 4 Room, 25.4% from 3 Room, 24.3% from 5 Room and 7.5% from Executive. The rest are from 2 Room and Multi-Gen.

3. The highest transacted price for a resale flat in the month was achieved at $1,100,000 by a high-floor 5-Room unit at The Pinnacle @ Duxton; In Non-Mature Estates, the highest transacted price was an Executive Maisonette unit at Hougang transacted at $850,000.

4. Overall median Transaction Over X-Value (T-O-X) is ZERO in October 2019. This represented an increase of $2,000 as compared to September 2019. The median T-O-X for HDB measures whether people are overpaying (POSITIVE T-O-X) or underpaying (NEGATIVE T-O-X) the SRX Property X-Value estimated market value.

• 5 Room and Executive witness POSITIVE median T-O-X of $2,000 and $6,000, respectively, while HDB 3 Room and 4 Room both record NEGATIVE median T-O-X of $1,000.
• Serangoon posts the highest median T-O-X at POSITIVE $9,500 in October 2019, followed by Bukit Merah at POSITIVE $8,000.
• Queenstown posts the lowest median T-O-X at NEGATIVE $12,000, followed by Pasir Ris at NEGATIVE $8,000.
• T-O-X data only include HDB towns with more than 10 resale transactions with X-Value.

5. An estimated 2,320 flats will become eligible to join the HDB resale market in the next three months, based on SRX data, as these units approach their respective 5-year Minimum Occupation Period.