HDB Resale Prices Increase While Private Home Prices Fall In Q1
SINGAPORE: Resale prices of HDB flats went up in the first quarter of 2012, at the same time the prices of private homes dropped for the first time since 2009.
HDB flash estimates reflected an increase of 0.6 per cent in the January-March quarter, the smallest increase in resale prices ever since the third quarter of 2006. The rise was also lower than the 1.7 per cent gain recorded in the fourth quarter of 2011.
HDB will release the resale price index for the full quarter on 27 April.
HDB has said it is dedicated to present 25,000 new flats under the Build-To-Order scheme this year and will put on sale 4,640 new flats next month in Choa Chu Kang, Kallang/Whampoa, Punggol and Sengkang.
Independently, a flash estimate by the Urban Redevelopment Authority (URA) illustrate a 0.1 per cent turn down in the price index for private homes in the first quarter this year, compared to a 0.2 per cent increase in the fourth quarter of 2011.
Prices of non-landed private residential homes dropped by 0.9 per cent in the core central region and 0.7 per cent in rest of central region during the quarter.
However, prices outside the central region increased by 1.2 per cent, compared to a 0.6 per cent rise in the previous quarter.
Remarking on the newest HDB figures, real estate agency ERA said resale prices are becoming stable and cash-over-valuation premiums are falling.
ERA’s key executive officer Eugene Lim said HDB resale prices have hit a ceiling and home-buyers are fascinated with the new BTO flats.
ERA added that the most recent move to apportion 15 per cent of BTO flats in non-mature estates to second-time HDB buyers has also encourage home-buyers toward this segment.
In general resale transaction volume has fallen, with larger flats such as five-room and executive flats witnessing a bigger decrease in resale volume compared to three- and four-room flats.
Base on its analysis, median COV for all flat types have dropped by between 16.7 per cent to 18.2 per cent.
ERA anticipates median COV to continue to fall and become constant at S$15,000 by year’s end.
On private homes’ resale prices, Jones Lang LaSalle’s head of research for Southeast Asia Dr Chua Yang Liang said weaker economic conditions have softened investors’ demand for private homes.
Together with latest government measures aiming at cooling the Singapore property market, sales volume and resale prices for private residential market have been further dampened.
He further noted that prices for private homes in the core central region fell 0.9 per cent, the biggest initial quarterly decline ever since 2004.
Nevertheless there is still a demand for mass market homes, with prices in the outside central region going up by 1.2 per cent, double that the fourth quarter of 2011.