Wednesday, October 03, 2012

HDB resale prices hit all-time high

The HDB Resale Price Index (RPI) rose two percent to a new record high of 197.9, according to the housing board’s flash estimates for the third quarter of 2012.

“The HDB resale price index is now at its historical peak as this increase of two percent is the highest in the last four quarters (since 3Q11, when the price index grew by 3.8 percent). This is somewhat unexpected as the increase came with the onset of a greater supply of BTO (Build-to-Order) flats since 2011 and the moderation of HDB resale prices in the first two quarters of this year,” said Mohamed Ismail, CEO of PropNex Realty.

He believes one of the reasons for the increase in resale price index is that there is a growth in HDB resale activities in the second half of the year, which usually happens in the third quarter.

Another factor is the continued strong and latent demand for resale flats, which is complemented by a strong economy, with finances of resale flat buyers remaining robust.

“With the HDB resale prices increasing by 3.9 percent for the first nine months of the year, it is likely to hit between five to six percent for the entire 2012,” Ismail said.

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