Singapore's HDB resale volume in July highest in two years

HDB resale prices had increased 0.4 per cent in July 2020 compared with June 2020. - ST

SINGAPORE (The Straits Times/ANN): The number of Housing Board flat resale transactions continued to remain high in July, with prices creeping up, according to flash data released by real estate portal SRX Property on Thursday (Aug 6).

An estimated 2,470 HDB resale flats were sold last month, a 0.7 per cent increase from June when 2,453 units were sold.

July's sales estimates are the highest monthly sales in two years since July 2018, when 2,553 units were transacted.

The two months of high sales came after exceptionally low numbers of 423 and 364 flats sold in April and May respectively, during the circuit breaker period that lasted from April 7 to June 1.

The latest estimates showed HDB resale prices had increased 0.4 per cent in July 2020 compared with June 2020, with the resale price index at 132.9 in July, up from 132.3 in June.

Property analysts said that despite the bleak economic outlook, the HDB resale market will likely weather the pandemic.

ERA Realty's head of research and consultancy Nicholas Mak said: "Some home buyers prefer to purchase HDB flats during periods of economic uncertainties as they remain the most affordable housing."

He predicted that the resale price index is likely to rise gradually, and estimated that there would be an increase of between 0.6 per cent and 1.2 per cent by the end of this year.

Mak said the increase in resale prices from June to July could be attributed partly to an increase in the transactions of newer HDB flats, with many reaching the end of their five-year minimum occupation period.

These flats usually command a higher price than the older flats in the same neighbourhood, he added.

Wong Siew Ying, head of research and content at PropNex, said: "The strong resale volume in July would likely put to rest any doubts that June's sales spike was a blip caused by pent-up demand owing to the lockdown in April and May.

"We believe such demand for resale flats could be sustained and are projecting overall HDB resale volume to come in at 21,000 to 22,000 flats for the full-year 2020 -- slightly lower than the 23,714 units resold in 2019."

She added that the fact that HDB prices have held up in recent quarters -- amid the pandemic -- also reflects the strength of the HDB resale market, where sellers still have sufficient financial holding power and are generally able to maintain their asking prices. - The Straits Times/Asia News Network