HDB resale prices to rise 3-8% in 2013: analysts

By Romesh Navaratnarajah:Property analysts expect resale prices of HDB flats to rise by around three to eight percent in 2013, while cash-over-valuations (COVs) could grow between five and 10 percent, reported The Business Times.

With limited supply and easy monetary conditions, experts predict a sustained demand for such units next year.

Nicholas Mak, Executive Director of Research and Consultancy at SLP International, compared the resale market to a large ship that requires more time to turn around.

"Nothing short of government intervention or a softening economy would bring down prices."

An expected stabilisation in prices and COVs failed to materialise fully this year amid efforts by the government to divert demand from the resale market, said Lee Sze Teck, Senior Manager for Training, Research and Consultancy at DWG.

Mak implied that the buoyant resale market would be hard to dampen even as a bumper supply of Build-to-Order (BTO) units is released by the government, adding that it could take two to three more years for the government to do so.

The report also noted that property measures implemented this year will have mixed results. Restriction on loan tenures will have a chilling effect, while restrictions on the volume of shoebox units in private residential projects could turn demand back to resale homes.

This year's low borrowing rate spurred interest from permanent residents (PRs) and second-time buyers.

Overall, analysts said most of the factors that kept the resale market abuzz this year will continue to remain relevant in 2013. Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@allproperty.com.sg Related Stories: HDB sets up branch in Punggol Town

HDB property tax to increase in 2013

BTO supply boost easing application rates

More from PropertyGuru:
HDB sets up branch in Punggol Town
HDB property tax to increase in 2013
BTO supply boost easing application rates
My Waterway@Punggol a winner again

  • How a mom stole a car in under 60 seconds 13 hours ago
    How a mom stole a car in under 60 seconds

    “I didn't steal your car but I think my mom may have. It's a long story. I'll explain, but your car is safe and sound," read the flier posted in Red Hook, Brooklyn. It’s a strange tale that began when Cheyrl Thorpe was asked by her daughter Nekisia Davis to dog sit her Pomeranian at her apartment, according to New York Magazine.

  • All-new 2015 Subaru Outback reestablishes higher ground 16 hours ago
    All-new 2015 Subaru Outback reestablishes higher ground

    Much of Subaru’s modern day success in America can be attributed to one car: the Outback. Born in 1994 as a response to the growing popularity of SUVs, the Outback established a winning formula of combining a high-riding suspension, butch body cladding and big round fog lights to its comfortable, no-nonsense Legacy wagon. It is the kind of unique product that only a quirky company like Subaru could build, and was one that kept Subaru from slipping into ubiquity even as traditional SUVs and crossovers have taken over the world.

  • Custom faux-tique electric tram aims to replace New York's horses over the neigh-sayers 16 hours ago
    Custom faux-tique electric tram aims to replace New York's horses over the neigh-sayers

    For the record, it's the year 2014. I mention that in case someone reading this story about a push to replace horses with motorized carriages thinks they've stumbled onto some archival piece by accident. It's been more than 100 years since the first vehicles began to trundle around Manhattan, but the last remaining vestiges of horse-powered transport in the city could be nigh — if the backers of a massive electric wagon get their way.

  • Singaporeans slam NEA's $120 licence requirement for tissue sellers
    Singaporeans slam NEA's $120 licence requirement for tissue sellers

    Singaporeans on social media reacted angrily to news that tissue sellers at hawker centres and street corners are being required to pay for an annual licence.

  • Heartbreaking texts from students on sinking S. Korea ferry
    Heartbreaking texts from students on sinking S. Korea ferry

    Heart-wrenching messages of fear, love and despair, sent by high school students from a sinking South Korean ferry, added extra emotional weight Thursday to a tragedy that has stunned the nation. Nearly 300 people -- most of them students on a high school trip to a holiday island -- are still missing after the ferry capsized and sank on Wednesday morning. Mom, I love you," student Shin Young-Jin said in a text to his mother that was widely circulated in the South Korean media.

  • ‘Huge’ Hindu, Buddhist statues against Islam, ex-judge says
    ‘Huge’ Hindu, Buddhist statues against Islam, ex-judge says

    KUALA LUMPUR, April 16 — The “huge” statues at a Hindu temple in Batu Caves and Buddhist temple in Penang are an affront to Islam as the religion forbids idolatry, a retired Court of Appeals judge...