According to the latest SRX Property Index, Singapore’s HDB resale market fell 0.5% in July from 135.7 to 134.9 after the index remained at 135.7 for the past three months. This has disappointed many market observers who believe the housing market have turned and squashed speculations that prices will start to increase in July.
Resale prices of HDB 3 Room Flats remained flat while prices of HDB 4, 5 Room and Executive Flats went down by 0.7%, 1.2% and 0.9% respectively. As compared to a year ago in July 2014, prices have declined 4.3% this month and 11.4% since its peak in April 2013.
Housing resale volume has also declined significantly at 9.2% in July compared to June. The median transaction in July also shows that resale HDB flats are selling at S$1,000 below market value.
However housing prices remain unaffordable with the median resale price of a 3-room flat in Sengkang standing at S$352,500, which translate to about a monthly payment of S$1.400 over 25 years based on 2.6% interest on S$320,000 loan: