Prices of HDB resale flats continue to rise

Prices of HDB resale flats have continued to rise. According to the Housing Development Board’s (HDB’s) flash estimates, prices rose 2.7 per cent in the first quarter of this year, compared to the last quarter of 2009.

The rise was more moderate compared to the almost 4 per cent increase in the fourth quarter of 2009. It is the fourth consecutive quarter of price increase. Resale volume has, however, trended downwards.

The estimated number of resale transactions for the full quarter is about 8,500. This is about 5 per cent lower compared to the fourth quarter of 2009, which registered 8,926 cases.

HDB said the median Cash-Over-Valuation (COV) amount for the first quarter was S$25,000, an increase of S$1,000 over the fourth quarter. HDB said it will ensure an adequate supply of new flats to meet housing demand.

At least 12,000 new Build-To-Order (BTO) flats will be launched this year, with launches scheduled monthly for the next few months. This will be supplemented by flats under the Design, Build and Sell Scheme (DBSS) as well as Executive Condominiums (EC) for the higher income buyers.

If demand remains strong, HDB will launch more BTO projects in the fourth quarter of this year.

Source : Channel NewsAsia – 1 Apr 2010

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