January 2016 HDB Resale Prices - First drop in seven months; Volume Decreases by 8.6%

In January 2016, HDB resale prices experienced its first decline in 7 months. In December 2015, the price remained stagnant. The fall in HDB resale prices is in line with the current economic weather: bearish stock markets, sliding oil prices and rising interest rates.

1. HDB resale prices decline in January.  HDB Resale prices fell 0.5% in January 2016 compared to that of December 2015. This marks the first decline in the monthly index in 7 months since July 2015. The resale prices of HDB 3 Room and HDB 4 Room Flats decreased by 0.5% and 1.0% respectively. On the other hand, the resale prices of HDB 5 Room and Executive Flats increased by 0.2% and 1.4% respectively.

According to the SRX Property Price Index for HDB Resale:

• Year-on-year, prices have decreased by 1.3% from January 2015;
• Prices have declined by 11.1% since the peak in April 2013;
• There is no revision for prices in December 2015.

According to the SRX Property Price Sub-Indices for HDB Resale:

• In January 2016, HDB resale prices decreased in both mature and non-mature estates by 0.5%;
• Year-on-year, prices in mature estates have declined by 1.2% from January 2015;
• Year-on-year, prices in non-mature estates have decreased by 1.2% from January 2015;

2. Resale volume decreases slightly. According to HDB resale data compiled by SRX Property, 1,286 HDB resale flats were sold in January 2016, an 8.6% decrease from 1,407 transacted units in December 2015.

• Year-on-year, resale volume increased by 2.6% compared to 1,254 units resold in January 2015;
• Resale volume was down by 64.8% compared to its peak of 3,649 units in May 2010.

3. Overall median Transaction Over X-Value (T-O-X) is NEGATIVE $1,000 in January. According to SRX Property, the median T-O-X for HDB was NEGATIVE $1,000 in January 2016. 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 $1,000 in January 2016, and remained the same as the figure in December 2015;
• Median T-O-X for HDB 3 Room, 4 Room, 5 Room and Executive flats in January 2016 were ZERO, NEGATIVE $1,600, NEGATIVE $3,500 and POSITIVE $3,000 respectively.

4. Bishan posts the highest median T-O-X. For HDB towns having more than 10 resale transactions with T-O-X in January 2016, Bishan reported the highest median TOX of POSITIVE $19,000 followed by POSITIVE $8,000 in Serangoon.


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

5. Among relatively active towns, Clementi posts the most negative median T-O-X. Among HDB towns having more than 10 resale transactions with T-O-X in January 2016, the lowest median T-O-X was in Clementi at NEGATIVE $10,200, followed by Yishun at NEGATIVE $7,000.

This means that majority of the buyers in these towns have purchased units below the computer generated market value.