July 2016 HDB Resale Price Increases by 0.7%; Volume Decreases 13.7%

Headline: HDB Resale Price increases by 0.7%; Volume decreases by 13.7%.

Observations:

1. HDB resale prices increases in July 2016. HDB Resale prices increased 0.7% in July 2016 compared to June 2016. The resale prices of HDB 3 Room, 4 Room and HDB 5 Room Flats increased by 0.6%, 0.3% and 0.5% respectively. On the other hand, the resale prices of HDB Executive Flats decreased 0.4%.

According to the SRX Property Price Index for HDB Resale:

• Year-on-year, prices have increased by 0.8% from July 2015;
• Prices have declined by 10.9% since the peak in April 2013;

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

• In July 2016, HDB resale prices of mature estates and non-mature estates increased by 0.8% and 0.6% respectively.
• Year-on-year, prices in mature estates have increased by 1.1% from July 2015;
• Year-on-year, prices in non-mature estates have increased by 0.4% from July 2015;

2. Resale volume decreases in July 2016. According to HDB resale data compiled by SRX Property, 1,573 HDB flats were resold in July 2016, a 13.7% decrease from 1,823 transacted units in June 2016.

• Year-on-year, resale volume increased by 1.4% compared to 1,552 units resold in July 2015.
• Resale volume was down by 56.9% 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 July 2016. According to SRX Property, the median T-O-X for HDB was NEGATIVE $1,000 in July 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 July 2016, a decrease of $1,000 compared to June 2016;      
•  Median T-O-X for HDB 3 Room, 4 Room, 5 Room and Executive flats in July 2016 were ZERO, NEGATIVE $2,000, NEGATIVE $1,000 and NEGATIVE $1,000 respectively.

4. Toa Payoh posts the highest median T-O-X. For HDB towns having more than 10 resale transactions with T-O-X in July 2016, Toa Payoh reported the highest median TOX of POSITIVE $25,500 followed by POSITIVE $4,000 in Clementi and Bukit Batok.

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

5. Among relatively active towns, Punggol posts the most negative median T-O-X. Among HDB towns having more than 10 resale transactions with T-O-X in July 2016, the lowest median T-O-X was in Punggol at NEGATIVE $10,000, followed by Bukit Merah at NEGATIVE $8,000.

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