- Joined
- Jul 24, 2008
- Messages
- 33,627
- Points
- 0
[h=2]HDB resale prices reach historic peak[/h]
January 14th, 2013 |
Author: Contributions
The Housing and Development Board (HDB) has released its Resale Price Index (RPI) flash estimates for Q4 2012, which stands at 202.9 representing a 2.5 percent increase compared to Q3.
This suggests a continued increase in public housing prices, even with the greater supply of new flats.
According to the housing board, 34,237 flats were offered in 2012, comprising 27,084 units under the Build-to-Order (BTO) scheme and 7,153 homes from the Sales of Balance Flats (SBF) exercise.
Mohamed Ismail, CEO of PropNex Realty said: “The HDB resale price index is now at its historical peak as this increase of 2.5 percent is the highest since Q3 2011, when the price index grew by 3.8 percent. One of the reasons for the increase in resale price index is the tight supply of resale flats coupled with the strong demand.”
“However, a closer look at the figures showed that the overall price increase of 6.4 percent for 2012 is the lowest for the past five years since 2007. Overall, I think HDB’s policy of increasing the housing supply had produced the desired results of moderating public housing prices.”
He expects the HDB resale market to see more price hikes in 1H2013, “even with an increase of 23,000 new BTO flats due to the construction time”.
The effects of more supply will likely be felt in 2H2013 with HDB resale prices likely to grow by five to seven percent for the whole year, added Ismail.
.
[Source]: PropertyGuru – for the latest property news and opinions from Singapore and around Southeast Asia, visit PropertyGuru.
.
This suggests a continued increase in public housing prices, even with the greater supply of new flats.
According to the housing board, 34,237 flats were offered in 2012, comprising 27,084 units under the Build-to-Order (BTO) scheme and 7,153 homes from the Sales of Balance Flats (SBF) exercise.
Mohamed Ismail, CEO of PropNex Realty said: “The HDB resale price index is now at its historical peak as this increase of 2.5 percent is the highest since Q3 2011, when the price index grew by 3.8 percent. One of the reasons for the increase in resale price index is the tight supply of resale flats coupled with the strong demand.”
“However, a closer look at the figures showed that the overall price increase of 6.4 percent for 2012 is the lowest for the past five years since 2007. Overall, I think HDB’s policy of increasing the housing supply had produced the desired results of moderating public housing prices.”
He expects the HDB resale market to see more price hikes in 1H2013, “even with an increase of 23,000 new BTO flats due to the construction time”.
The effects of more supply will likely be felt in 2H2013 with HDB resale prices likely to grow by five to seven percent for the whole year, added Ismail.
.
[Source]: PropertyGuru – for the latest property news and opinions from Singapore and around Southeast Asia, visit PropertyGuru.
.
