May 2016 HDB Resale Price Increases by 0.2%; Volume Remains Flat

1. HDB resale prices increase slightly in May 2016. There was a slight increase of 0.2% in HDB Resale prices in May 2016 compared to that of April 2016. The resale prices of HDB 3 Room, 5 Room and Executive Flats increased by 0.7%, 0.7% and 0.4% respectively. On the other hand, the resale prices of HDB 4 Room Flats decreased by 0.7%.

According to the SRX Property Price Index for HDB Resale:

• Year-on-year, prices remained flat compared to May 2015;
• Prices have declined by 10.9% since the peak in April 2013;
• There is no revision for price changes in April 2016.

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

• In May 2016, HDB resale prices in mature estates decreased by 0.1% while resale prices in non-mature estates increased by 0.5%;
• Year-on-year, prices in mature estates have increased by 0.6% from May 2015;
• Year-on-year, prices in non-mature estates have decreased by 0.5% from May 2015;

2. Resale volume stays flat. According to HDB resale data compiled by SRX Property, 1,826 HDB resale flats were sold in May 2016, which is comparable to the 1,828 units transacted last month in April 2016.

 

• Year-on-year, resale volume increased by 15.9% compared to 1,575 units resold in May 2015;
• Resale volume was down by 50.0% 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 May 2016. According to SRX Property, the median T-O-X for HDB was NEGATIVE $1,000 in May 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 May 2016, down by $1,000 compared to the figure in April 2016;
• Median T-O-X for HDB 3 Room, 4 Room, 5 Room and Executive flats in May 2016 were NEGATIVE $2,000, ZERO, NEGATIVE $3,000 and POSITIVE $500 respectively.

4. Sembawang posts the highest median T-O-X. For HDB towns having more than 10 resale transactions with T-O-X in May 2016, Sembawang reported the highest median TOX of POSITIVE $6,000 followed by POSITIVE $3,500 in Geylang.

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

5. Among relatively active towns, Hougang posts the most negative median T-O-X. Among HDB towns having more than 10 resale transactions with T-O-X in May 2016, the lowest median T-O-X was in Hougang at NEGATIVE $12,000, followed by Ang Mo Kio at NEGATIVE $7,500.

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