X-Value Performance

The purpose of stress-testing is to measure how closely market participants are transacting to X-Value. What we have consistently found is a very smooth and tight normal distribution curve for both HDB resale flats and private apartments. Landed also has a normal distribution curve, but it is less smooth and tight. We expect deviation as a result of the goodwill factor. We would expect it to shrink (but not disappear) as more and more people adopt X-Value and X-Listing Price.
Stress-Testing Methodology
  1. The objective of this stress-testing is to measure the Transaction-over-X Value (TOX) for each unit transacted during the period 2009Q1 to 2020Q1. The definition of TOX is the deviation between a unit's X-Value and its corresponding transaction. For example, if the X-Value for unit A was $400,000 but it was transacted at $401,000, then TOX for that unit would be POSITIVE $1,000.

  2. In order to establish the X-Value for each unit, StreetSine's system calculated the X-Value for the unit the day before the date of the actual transaction.

  3. StreetSine's computer systems then compared each backdated X-Value to the unit's actual transaction, as identified by the same exact address and unit number. In the case of private transactions, the system sourced the actual transaction information from URA/REALIS. Since HDB does not publish precise unit addresses, the system sourced the actual transactions from StreetSine's propriety database, which captures most HDB transactions via its integration with the commission systems of the SRX consortium of estate agencies.

  4. In order to compare StreetSine's performance against other computer-generated valuations, we measure the Purchase Price Deviation (PPD).

    PPD = TOX/XValue = (Purchase Price - XValue)/X-Value. For example, a home
    with a TOX of $1,000 and X-Value of $400,000 would have a PPD of 0.25%.


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