HDB resale prices fall for fifth consecutive month
The Singapore Real Estate Exchange, SRX, says HDB resale prices have fallen to a 27-month low.
And, they're expected to continue falling for the rest of this year.
Our News Desk finds out more.
The latest SRX report shows that prices dipped for the fifth consecutive month in June, by another 0.6 per cent from May.
Since the start of the year, they've come down some 3 per cent.
Property analyst Chris Koh expects the downward trend to continue for at least two more quarters.
"Normally, a cycle that's experiencing a turnaround takes about two years. This time round we've only gone into one year of corrective prices, we can have a bit more room in the second half of this year. If we see more prices correcting and stabilising, perhaps then the Ministry may look into it, right now, it doesn't justify the demand for loosening measures yet."
ERA Singapore's Eugene Lim, feels it'll last a bit longer, till the first quarter of next year at least.
"If you bought a flat in the resale market 10 years ago, you sell it today, it's almost double the price. The market has not experienced a big dip, if you put the whole thing in concept, everyone is still well above water."
In June, prices of resale 3, 4 and 5-room flats fell, but not for executive flats.
They rose 1.3 per cent but SRX says they're still some five per cent of their peak in February last year.
The number of total transaction in June, was flat at about 1,300 units.
In contrast, more than two and a half times more flats changed hands in May 2010.
The latest SRX report also showed prices continued to face downward pressure.
A measure used to gauge this called the median Transaction Over X-Value (TOX) was a negative $4,000 in June.
That means buyers are paying four thousand dollars less than what SRX estimates as the market value for the flat.
The lowest median TOX are in Hougang, Punggol and Sembawang.
Hougang saw buyers paying as much as $9,000 less than the estimated value of the flats there.
Eugene Lim from ERA Singapore explains why.
"These are larger HDB estates, there are probably more people selling, also have a fair amount of new flats that are being pushed into the market. All these compete for buyers, prices tend to take a hit. Also, flats in Hougang, for example, are older, they will take a bigger hit when there's a decrease in prices.
Only flats in Geylang saw positive median TOX.
Mr Lim says the development of the Paya Lebar regional centre could have given prices a lift.
The government has said that it's still too early to remove the property cooling measures.
It warned that removing them prematurely could lead to a sharp increase in demand and prices
-By Lee Gim Siong
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