by OrangeTee & Tie Pte Ltd.

HDB resale flats sales dropped 3% despite slightly lower prices

SRX HDB Resale Data

December 2019

Singapore, 10 Jan 2020

The HDB resale market ended on a higher note last year with more flats (1,858 units) changing hands in December when compared to a year ago. While sales volume dipped by 3.0 per cent on a month-on-month (m-o-m) basis, it surged 29.6 per cent year-on-year. December 2019 was one of the months with the strongest December sales in recent years - i.e. 1,434 units sold in 2018, 1,587 units sold in 2017, 1,391 units in 2016 and 1,420 units in 2015 (based on past SRX reports). The total number of resale transactions for 2019 had also risen by 3.4 per cent year-on-year. 

The m-o-m decline is seasonal. Housing activities typically slow down in December since most potential buyers are still on holiday and many sellers prefer to hold back their listings to the start of the following year. 

On a year-on-year basis, prices have also increased by 0.4 per cent from the preceding year. The price increase has also been observed across most flat types, with the exception of 3 room flats where prices dipped marginally by 2.2 per cent when compared to last year. This indicates that prices can be said to have improved island-wide when compared to a year ago. 

Sales volume and prices have both improved when compared to a year ago. The overall market performance for 2019 is considered commendable given the macroeconomy uncertainties and slower economic growth. The recent positive developments on the policy front may have been the key catalysts behind the market improvement. Policy changes like the EHG (Enhanced CPF Housing Grant) and increased flexibility of CPF usage for the purchase of older flats, maybe the demand side stimulant that has spurred more purchases in recent months. Moving forward, we would expect higher sales volume and sentiment to improve further this year. 

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