The outlook for HDB resale market remains as hazy as Singapore’s recent weather. According to SRX Property, the Transaction-over-X Value (TOX) graph has alternated in the last three months between ZERO and NEGATIVE $1,000 for three consecutive months. This suggests buyers are on the fence, neither bullish nor bearish on housing prices. A neutral TOX is good for the short term stability of the market, but eventually we want to see TOX permanently move into positive territory so that homes appreciate and people can save for an upgrade or retirement.
In terms of different HDB estates, 16 out of the 23 active estates (more than 10 transactions) posted a ZERO or NEGATIVE TOX, suggesting a rather bleak market sentiment. In this regard, Kallang/ Whampoa is truly an outlier, posting a TOX of $15,000. Other estates in the city fringe such as Geylang ($2,000) and Queenstown ($5,000) are coping fine as well. Meanwhile, estates in the North-East Region are the worst performing, including Ang Mo Kio (-$7,000), Punggol (-$12,000) and Hougang (-$8,000).
Source: SRX (08 Oct 2015)