HDB flash estimates show resale prices rise 0.2% q-o-q in 2Q2020

SINGAPORE (EDGEPROP) - HDB resale prices rose by 0.2% q-o-q in 2Q2020, after remaining unchanged in 1Q2020, according to flash estimates released by HDB.

“The recent positive run in the price index – albeit marginal - indicates that HDB resale prices have probably bottomed. The restrictions to curb the spread of Covid-19 for the most part of Q2 have hurt sales volume, but prices appeared to hold,” says Wong Siew Ying, head of research and content at PropNex.

“This suggests that sellers are able to maintain their asking price and there seems to be little signs of distress,” adds Wong.

Pending sales data from June, PropNex still expects HDB resale transactions in 2Q2020 to drop, from the 5,893 transactions in 1Q2020.

HDB resale volume in April and May totalled 789 transactions, fewer than for the same period in 2017 to 2019. Property consultants attribute the low resale volume over the period to the “circuit breaker” measures, which prevented physical house tours from happening.

Christine Sun, head of research & consultancy at OrangeTee & Tie, says: “Physical house viewings are important for the resale market as most buyers would prefer a physical inspection of the premises before making a purchase. They may want to examine the condition of the units and assess the surrounding environment.” Looking ahead, Sun expects the overall HDB resale price to trend between -2% and 1% this year.

Ismail Gafoor, CEO of PropNex, says: “With the gradual reopening of the economy, we believe [HDB] resale volume could pick up in the coming months.”