HDB resale prices relatively flat in April: SRX
Prices of HDB resale flats remained relatively flat in April, dropping 0.2 per cent compared to March.
According to the Singapore Real Estate Report, SRX, this marginal drop was driven by softer prices of three, four and five-room flats.
They fell between 0.2 and 0.8 per cent.
However, prices of executive flats, rose 1.2 per cent.
On a year-on-year basis, prices in April 2014 are down 5 per cent from the same period last year.
Analysts say this is due to a series of cooling measures that were imposed by the government.
One measure is the recent revision in resale procedures to reduce the focus on Cash-Over-Valuation.
Director of Chris International, Chris Koh explains.
"If I'm a buyer, who do not have a valuation report to fall back on, I'll be very cautious in my offer. I'll be afraid that if I buy at a certain price, what if the valuation comes out much lower and requires me to fork out all cash. So I'll be conservative in my offer and I'll end up making a lower offer for the property. Thus if every buyer were to offer lower for HDB flats, what will happen is that you will see is a price decline."
According to HDB resale data compiled by SRX, resale volume reached its highest level in 9 months.
1,484 HDB flats were sold last month.
And that's a 4.4 per cent increase from March.
Rentals continued to soften.
Overall HDB rental price dropped by 1.1 per cent in April compared to March.
Flats in Jurong East, especially executive flats seem to be popular due to limited supply.
Flats in Queenstown are also highly sought after because of the excellent city fringe location as well as the rejuvenation of the entire Queenstown in the coming years.
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