ST
Jan 5, 2010
Resale HDB flat prices hit new high
Year's total increase amounts to 8%; private home prices too are up
By Jessica Cheam
HOUSING Board (HDB) resale flat prices continue to climb ever higher, with prices in the fourth quarter of last year setting a new record.
Flash estimates released by the HDB yesterday show prices rose by 3.8 per cent in the fourth quarter, bringing last year's total price rise to about 8 per cent - a surprise outcome for many property experts who had predicted price falls at the start of last year.
The Resale Price Index (RPI) hit 150.7 in the fourth quarter, up from the third quarter's 145.2 and far beyond the previous peak of 136.9 achieved in the fourth quarter of 1996.
HDB flat prices have risen almost 40 per cent over the past three years.
Private home prices put on an even more impressive 7.3 per cent rise in the fourth quarter of last year compared to the third. This came on top of a 15.8 per cent gain in the third over the second quarter.
Urban Redevelopment Authority estimates released yesterday showed private home prices rose about 1.7 per cent over the whole of last year.
Analysts say the skyward rise in prices is down to demand outpacing supply.
A quicker-than-expected economic recovery during the year and a booming immigrant population, with many new families and expatriates relocating to Singapore post-economic crisis, contributed to the strong demand.
PropNex chief executive Mohamed Ismail said that permanent residents easily made up 20 per cent of his agency's total HDB sales.
At C&H Realty, this group of buyers account for as many as 50 per cent of all HDB resale transactions, revealed managing director Albert Lu.
Mr Patrick Grove, executive chairman of online portal iproperty.com.sg, said an interesting trend to emerge was the increase in foreigners interested in Singapore properties.
The portal's traffic from foreign countries grew by up to 20 per cent month-on-month during the second half of last year. This compares to 5 per cent to 10 per cent growth for Singapore-originated searches.
'There's more demand for homes now that the worst of the economic crisis is over. Low interest rates are also a key factor, as it's more affordable than ever to buy a property,' added Mr Grove.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak pointed out that continued recovery in private home prices meant some home buyers were being priced out of this market, and had to turn to HDB resale flats.
'As long as the prices of suburban condominiums remain relatively high, there will be space for resale flat prices to expand,' he said.
Analysts do not see any end in sight to the increase in HDB values. They are predicting price rises in the range of 8 per cent to 15 per cent for HDB flats for 2010.
Mr Lu reckons prices will rise about 3 per cent each quarter. But PropNex's Mr Ismail predicts a slowdown in the rate of increase - to about 2 per cent during the first quarter of the year.
Despite further flat supplies set to come onstream during the year, Mr Mak expects prices to gain another 8 per cent to 15 per cent this year.
HDB yesterday moved to address supply concerns by announcing it would launch more build-to-order (BTO) flats this year if there was 'sustained demand for new flats'. It would, it added, 'ensure that there is an adequate supply of flats to meet prevailing housing needs'.
Some 1,300 new flats are to be launched for sale today by HDB in Choa Chu Kang and Hougang.
As an indication of the red-hot demand for homes, there was an overwhelming response to a recent launch by HDB of BTO flats at Dawson, where some flats were more than 11 times oversubscribed.
Industry observers are unsure whether BTO flat supply will have a significant impact on the current high level of demand, given that such flats typically take three to four years to complete.
'BTO flats do not provide immediate roofs over heads, so resale flats will continue to be in high demand. But the supply of new flats will go towards stabilising HDB resale price increases,' said Mr Ismail.
Jan 5, 2010
Resale HDB flat prices hit new high
Year's total increase amounts to 8%; private home prices too are up
By Jessica Cheam
HOUSING Board (HDB) resale flat prices continue to climb ever higher, with prices in the fourth quarter of last year setting a new record.
Flash estimates released by the HDB yesterday show prices rose by 3.8 per cent in the fourth quarter, bringing last year's total price rise to about 8 per cent - a surprise outcome for many property experts who had predicted price falls at the start of last year.
The Resale Price Index (RPI) hit 150.7 in the fourth quarter, up from the third quarter's 145.2 and far beyond the previous peak of 136.9 achieved in the fourth quarter of 1996.
HDB flat prices have risen almost 40 per cent over the past three years.
Private home prices put on an even more impressive 7.3 per cent rise in the fourth quarter of last year compared to the third. This came on top of a 15.8 per cent gain in the third over the second quarter.
Urban Redevelopment Authority estimates released yesterday showed private home prices rose about 1.7 per cent over the whole of last year.
Analysts say the skyward rise in prices is down to demand outpacing supply.
A quicker-than-expected economic recovery during the year and a booming immigrant population, with many new families and expatriates relocating to Singapore post-economic crisis, contributed to the strong demand.
PropNex chief executive Mohamed Ismail said that permanent residents easily made up 20 per cent of his agency's total HDB sales.
At C&H Realty, this group of buyers account for as many as 50 per cent of all HDB resale transactions, revealed managing director Albert Lu.
Mr Patrick Grove, executive chairman of online portal iproperty.com.sg, said an interesting trend to emerge was the increase in foreigners interested in Singapore properties.
The portal's traffic from foreign countries grew by up to 20 per cent month-on-month during the second half of last year. This compares to 5 per cent to 10 per cent growth for Singapore-originated searches.
'There's more demand for homes now that the worst of the economic crisis is over. Low interest rates are also a key factor, as it's more affordable than ever to buy a property,' added Mr Grove.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak pointed out that continued recovery in private home prices meant some home buyers were being priced out of this market, and had to turn to HDB resale flats.
'As long as the prices of suburban condominiums remain relatively high, there will be space for resale flat prices to expand,' he said.
Analysts do not see any end in sight to the increase in HDB values. They are predicting price rises in the range of 8 per cent to 15 per cent for HDB flats for 2010.
Mr Lu reckons prices will rise about 3 per cent each quarter. But PropNex's Mr Ismail predicts a slowdown in the rate of increase - to about 2 per cent during the first quarter of the year.
Despite further flat supplies set to come onstream during the year, Mr Mak expects prices to gain another 8 per cent to 15 per cent this year.
HDB yesterday moved to address supply concerns by announcing it would launch more build-to-order (BTO) flats this year if there was 'sustained demand for new flats'. It would, it added, 'ensure that there is an adequate supply of flats to meet prevailing housing needs'.
Some 1,300 new flats are to be launched for sale today by HDB in Choa Chu Kang and Hougang.
As an indication of the red-hot demand for homes, there was an overwhelming response to a recent launch by HDB of BTO flats at Dawson, where some flats were more than 11 times oversubscribed.
Industry observers are unsure whether BTO flat supply will have a significant impact on the current high level of demand, given that such flats typically take three to four years to complete.
'BTO flats do not provide immediate roofs over heads, so resale flats will continue to be in high demand. But the supply of new flats will go towards stabilising HDB resale price increases,' said Mr Ismail.
