This is a 6.3 per cent drop from last November, and 9.8 per cent decrease since its peak in April 2013.
1,350 HDB resale flats were sold in November, a 13.1 per cent decrease from 1,553 transacted units in October. Although resale volume increased by 11.4 per cent year-on-year, it is down 63.0 per cent compared to its peak of 3,649 units in May 2010.
Overall Median T-O-X was negative $3,000 in November 2014. Geylang posted the highest median T-O-X at $8,000, followed by Queenstown at $7,500 and Toa Payoh at $3,500.
In May 2013, one month before the government introduced Total Debt Servicing Ratio (TDSR), National Development Minister Khaw Boon Wan told participants at an Our Singapore Conversation dialogue on housing, "If housing prices keep rising, it won't be good. If we can maintain them or even lower them by a few per cent, for example 5 per cent, that's good. When I came into MND, that was my target."
"HDB prices have declined more than that of private resale flats because the government has been able to change both supply and demand in the HDB market whereas it has only changed demand on the private resale side," said Jeremy Lee, Chief Technology officer of SRX Property.
"From this year to 2016, MND expects 6,000 HDB upgraders to take the keys to their BTO flats each year. This number is twice that of last year. The upgraders must sell their existing HDB flats within six months of getting their BTO keys. The net result is that there is more supply in the HDB resale market. More supply puts downward pressure on prices," explained Mr Lee.
"There is a second way BTOs impact prices of HDBs. The government decoupled BTO pricing from the resale market resulting in lower BTO prices. As such, the BTO policy accomplishes two things. It introduces more units at below market price. This causes the price decline in the HDB resale market to outpace that of the private resale market."
The drop in prices spells good news for HDB buyers.
"HDBs are becoming more affordable thanks to the cooling measures and the increase in supply. A large percentage of Built-to-Order flats will be coming into the market, which will cause resale flats to have a downward pressure on their pricing," said Tim Seow, associate marketing director of GPS, "Furthermore, the very low interest rate means it is historically inexpensive for you to finance your home."
"Take advantage of the cooling measures to negotiate a discount, recognising that in the long run it is in everyone's interest for your home to appreciate and give you good returns," he added.
Source: AsiaOne (11 Dec 2014)