POSTED: 08 Nov 2013 12:33 | CNA

SINGAPORE

Overall cash premiums for resale Housing and Development Board (HDB) flats continued to drop while demand for resale non-landed private homes remained weak in October, according to flash estimates from the Singapore Real Estate Exchange (SRX) released on Friday.

Overall HDB cash-over-valuations (COVs) dropped another S$3,000 last month to reach a median of S$12,000, the lowest since July 2009 when the overall COV was S$10,000.

Resale prices for HDB flats overall also slipped 1.6 per cent in October, following a slight gain of 0.2 per cent in the preceding month. This represents a 2.8 per cent drop from the price peak in January of this year, the SRX said.

According to flash estimates, 1,318 HDB flats were sold in October’s resale market, a 26.5 per cent rebound from September’s 1,042 resale cases. On a year-on-year basis, last month’s resale transactions were 20 per cent lower than that of October 2012.

ERA’s key executive officer Eugene Lim said COVs are expected to continue to moderate as government’s cooling measures and the continued increase in supply of new flats continue to impact the market. This will translate to lower resale transaction prices in the fourth quarter and possibly the first quarter of next year.

He is projecting median COV to reach around S$10,000 by the end of the year.

With HDB being on track to launch 25,000 Build-to-Order flats for 2013, ERA is expecting total resale transactions of below 20,000 this year. This will be the lowest in the history of HDB resale transactions.

An estimated 1,506 HDB flats were rented in October 2013, up by 7.7 per cent compared to September.

In the resale market for non-landed private homes, prices softened by 0.1 per cent in October 2013 as buyers preferred new projects. The month-on-month drop was 1.6 per cent in September.

The overall price drop was led by Outside Central Region’s (OCR) 1.4 per cent drop, followed by Core Central Region’s (CCR) prices slipping 0.5 per cent. On the flip side, the Rest of Central Region (RCR) saw price gain of 0.4 per cent.

Analysts said this was attributed to more new private homes nearing completion in the central region, leading to softening resale prices, especially for the older properties.

An estimated 486 non-landed homes were resold last month, a 13.5 per cent improvement from September’s 428 units sold. However, on a year-on-year basis, October’s transactions were more than 50 per cent lower than October 2012’s 1,435 units.

TODAY/CNA/fa

http://www.channelnewsasia.com/news/singapore/hdb-covs-continue-to-fall/879214.html