Press Release to the Media
I refer you to the technical discussion earlier this month comparing SRX price indices with that of HDB:
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http://www.straitstimes.com/forum/letters-in-print/issues-with-assessment-of-srxs-hdb-data
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http://www.straitstimes.com/singapore/housing/hdb-resale-volume-stays-flat
I wrote in ST Forum that a more meaningful comparison between the two indices should be made after HDB releases its full quarterly index.
Today, HDB revised its Resale Price Index downward, from an increase of 0.1% to no change. This revision concurs with SRX Property's HDB Price Index, as reported in its June Media Flash Report, issued 7 July.
HDB revised its quarterly index to include June transactions that had not yet been recorded when it issued its flash estimate.
It is common practice for index providers to revise their indices. An index is a snapshot in time and can vary in objective and methodology, which includes time frame. New information comes in and index providers follow a procedure for updating their indices.
Each index provider designs its indexes for a certain purpose and with current characteristics. It is important that analysts understand the differences. As I stated in the ST Forum, it isn't easy to compare indices. It's even more difficult when one is a monthly index and the other is a quarterly one. (Go to srx.com.sg/price-index to see how to calculate a comparison.)
HDB and URA issue quarterly flash indices and then finalize them at a later date. They have chosen a quarterly index to support their analysts and policy makers.
SRX Property takes a different approach. Our objective is to serve consumers and property agents. As a result, we provide a monthly HDB index the first Thursday of the first full week of the month. This gives us enough time to account for all the HDB transactions the previous month.
HDB issued its second quarter index as a flash estimate before we issued our June index. As a result, SRX Property's index captured the late June transactions, and we were able to tell the public about the 0.6% decline in prices compared to that of May.
Since SRX Property serves consumers and property agents, we place great importance on monthly updates. In addition to market trends (i.e., indices), we provide the public with price bench-marking (i.e., X-Value), market sentiment (i.e., Transaction-over-XValue), and market liquidity (i.e., Days-on-the-market).
For more information on our indices, I encourage you to read our white paper at srx.com.sg/price-index.
Jeremy Lee
CTO, SRX Property
Please note that unfortunately, one of the analysts made several inaccurate statements about the technical aspects of SRX HDB indices versus that of HDB stat board in an ST story by Janice Heng and a BT story by Lee Meixian on 8 Jul 2016. Read more on ST Digital's correction here
You can also understand more about the detailed calculations SRX Research.