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

  • Thursday #sgroundup: Body found of boy who made first call from Korea ferry: report 5 minutes ago
    Thursday #sgroundup: Body found of boy who made first call from Korea ferry: report

    Here are today’s top trending stories in case you missed them.

  • Look, don't touch: Flickr photo of the day 11 hours ago
    Look, don't touch: Flickr photo of the day

    If there's one car that's particularly sought-after among today's well-heeled car collectors, a Ferrari 250 would be it. Usually it's the GTO variant, like the 1963 that sold for a record $52 million last year. A 250 of any sorts demands unfathomable cash, however, which is why we can but gawk at this 250 Testa Rossa. It's as close as any mere mortal will ever come to owning one.

  • Peeling out at Octane Academy, the free driving school for Ford ST owners 12 hours ago
    Peeling out at Octane Academy, the free driving school for Ford ST owners

    Buyers of Ferraris or Jaguars are used to perks from manufacturers – including racetrack lessons to help master their exotic machines. But for enthusiasts on a tighter budget, the Ford ST Octane Academy might be the sweetest deal in motoring: Buy a Ford Fiesta ST or Focus ST hatchback, and the reward is a free day of training at one of America’s longest, most-lavish road courses.

  • Pirates kidnap three on Singapore tanker off Malaysia
    Pirates kidnap three on Singapore tanker off Malaysia

    Armed pirates boarded a Singapore-managed oil tanker in the Strait of Malacca, kidnapping three Indonesian crew and stealing some of the vessel's shipment of diesel fuel, the International Maritime Bureau said Wednesday. The attack occurred early Tuesday off Malaysia's west coast, said Noel Choong, head of IMB's Kuala Lumpur-based piracy reporting centre. The diesel oil tanker was believed to be en route to Myanmar. "IMB is aware of the attack on the Singapore-managed ship in the Malacca Straits.

  • David Moyes statement after Man United firing
    David Moyes statement after Man United firing

    Statement released by David Moyes on Wednesday, a day after Manchester United announced he left as manager after less than a season in charge.

  • Indonesian general says his flashy watch is a fake
    Indonesian general says his flashy watch is a fake

    JAKARTA, Indonesia (AP) — Indonesia's military commander said critics who called him out for wearing an especially luxurious watch should be quiet because the timepiece is actually a cheap Chinese fake.