Resale prices of Housing & Development Board (HDB) flats slipped 0.7 per cent year on year in August while the volume of resale transactions rose 3 per cent over the same period, flash estimate by SRX Property for last month shows.
According to the SRX Property data, 1,957 HDB flats were resold in August 2017, compared with 1,900 in August 2016.
Last month's figure also reflects an increase of 9.6 per cent from the 1,785 units that changed hands in July 2017. However, the latest figure is 46.4 per cent lower than the peak of 3,649 units in May 2010.
SRX Property's overall resale price index for HDB flats inched up 0.1 per cent month on month in August after slipping 0.6 per cent in July 2017.
The price index is 12.1 per cent below the peak in April 2013.
In mature estates, prices eased 0.2 per cent year on year from August 2016, a smaller pace of decline compared with a 1.1 per cent price fall in non-mature estates over the same period.
ZACD Group's head of research and consultancy Nicholas Mak suggested that a possible reason behind the the month-on-month improvement in transaction volumes is that some buyers may have rushed to seal deals before the start of the Hungry Ghosts month on Aug 22; some Chinese avoid buying a property during the month.
OrangeTee's head of research and consultancy Wong Xian Yang commented that HDB resale prices continue to fluctuate in a sideway trend due to a confluence of factors. "Buying activity remains healthy and is supported by strong latent demand and improved affordability due to lower HDB resale prices compared to 2013 and the enhancement of the CPF Housing Grant earlier this year.
"Resale HDB volumes have continued to rise on a year-on-year basis, and higher volumes should lead to higher prices eventually, barring any changes in housing policies or unexpected market distress."
That said, price growth is projected to be gradual due to strict loan curbs, he added.
He expects HDB resale volumes to improve by about 2-5 per cent in 2017 over 2016, with prices likely to be range-bound between -1 per cent and +1 per cent this year.
According to the SRX Property data, 1,957 HDB flats were resold in August 2017, compared with 1,900 in August 2016.
Last month's figure also reflects an increase of 9.6 per cent from the 1,785 units that changed hands in July 2017. However, the latest figure is 46.4 per cent lower than the peak of 3,649 units in May 2010.
SRX Property's overall resale price index for HDB flats inched up 0.1 per cent month on month in August after slipping 0.6 per cent in July 2017.
The price index is 12.1 per cent below the peak in April 2013.
In mature estates, prices eased 0.2 per cent year on year from August 2016, a smaller pace of decline compared with a 1.1 per cent price fall in non-mature estates over the same period.
ZACD Group's head of research and consultancy Nicholas Mak suggested that a possible reason behind the the month-on-month improvement in transaction volumes is that some buyers may have rushed to seal deals before the start of the Hungry Ghosts month on Aug 22; some Chinese avoid buying a property during the month.
OrangeTee's head of research and consultancy Wong Xian Yang commented that HDB resale prices continue to fluctuate in a sideway trend due to a confluence of factors. "Buying activity remains healthy and is supported by strong latent demand and improved affordability due to lower HDB resale prices compared to 2013 and the enhancement of the CPF Housing Grant earlier this year.
"Resale HDB volumes have continued to rise on a year-on-year basis, and higher volumes should lead to higher prices eventually, barring any changes in housing policies or unexpected market distress."
That said, price growth is projected to be gradual due to strict loan curbs, he added.
He expects HDB resale volumes to improve by about 2-5 per cent in 2017 over 2016, with prices likely to be range-bound between -1 per cent and +1 per cent this year.