February 2016 HDB Resale Price inches up; Volume Decreases by 6.7%.

Headline: HDB Resale Price inches up; Volume Decreases by 6.7%.

1. HDB resale price inches up in February. There was a slight increase of 0.2% in HDB Resale prices in February 2016 compared to that of January 2016. The resale prices of HDB 3 Room and HDB 4 Room Flats increased by 0.2% and 0.8% respectively. On the other hand, the resale prices of HDB 5 Room and Executive Flats decreased by 0.1% and 0.7% respectively.

According to the SRX Property Price Index for HDB Resale:

• Year-on-year, prices have decreased by 0.6% from February 2015;
• Prices have declined by 10.9% since the peak in April 2013;
• There is no revision for prices in January 2016.

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

• In February 2016, HDB resale prices increased in both mature and non-mature estates by 0.2%;
• Year-on-year, prices in mature estates have declined by 0.4% from February 2015;
• Year-on-year, prices in non-mature estates have decreased by 0.8% from February 2015;

2. Resale volume decreases slightly. According to HDB resale data compiled by SRX Property, 1,200 HDB resale flats were sold in February 2016, an 6.7% decrease from 1,286 transacted units in January 2016.

• Year-on-year, resale volume increased by 4.5% compared to 1,148 units resold in February 2015;
• Resale volume was down by 67.1% compared to its peak of 3,649 units in May 2010.

3. Overall median Transaction Over X-Value (T-O-X) is NEGATIVE $2,000 in February. According to SRX Property, the median T-O-X for HDB was NEGATIVE $2,000 in February 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 $2,000 in February 2016, decreased by $1,000 compared to the figure in January 2016;
• Median T-O-X for HDB 3 Room, 4 Room, 5 Room and Executive flats in February 2016 were NEGATIVE $2,000, ZERO, NEGATIVE $9,100 and POSITIVE $2,000 respectively.

4. Kallang/Whampoa posts the highest median T-O-X. For HDB towns having more than 10 resale transactions with T-O-X in February 2016, Kallang/Whampoa reported the highest median TOX of POSITIVE $9,000 followed by POSITIVE $5,000 in Sengkang and Yishun.

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

5. Among relatively active towns, Choa Chu Kang posts the most negative median T-O-X. Among HDB towns having more than 10 resale transactions with T-O-X in February 2016, the lowest median T-O-X was in Choa Chua Kang at NEGATIVE $16,000, followed by Toa Payoh at NEGATIVE $10,000.

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