HDB resale prices rise faster in Q3

With limited supply and strong demand in the HDB resale market, the Resale Price Index (RPI) has reached 187.1, a 3.8 percent rise from the previous quarter, according to HDB's Q3 2011 flash estimates.

The robust demand for resale flats comes from buyers who are seeking homes for their own occupation, including permanent residents (PRs), singles, HDB upgraders and downgraders and private property downgraders.

However, due to the January cooling measures, as well as the reduced 60 percent loan-to-value (LTV) ratio and the revised minimum occupation period to five years, homeowners are reluctant to sell or move, leading to a supply crunch and pushing median resale prices up.

"We expect the momentum to continue and prices to increase by 11 percent for year 2011," said Mohamed Ismail, Chief Executive Officer of PropNex.

Despite a massive increase of 82.35 percent in HDB resale flat prices over the past five years, PropNex estimates prices will stabilise with the launch of more BTO and SBF flats.

In November 2011, the HDB will be launching another 4,200 BTO flats for sale in various estates, including Bukit Panjang, Bedok, Hougang, Yishun and Punggol.

For the whole year, the HDB is on track to deliver 25,000 BTO flats.

Meanwhile, flash estimates released by the URA highlighted that private home prices climbed 1.3 percent quarter-on-quarter to another record high of 205.7, with the Core Central (CCR), Rest of Central (RCR) and Outside Central (OCR) regions recording incremental increases of 0.8 percent, 1.1 percent and 2.1 percent respectively.

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