Resale Prices Of HDB Flats Highest In 10 years

Source : The Straits Times, Jan 2, 2008

IT'S official: HDB homes have enjoyed a spectacular bull run of 17.4 per cent in 2007 - the highest growth in a decade - but market watchers say a repeat is unlikely this year.

The Housing Board (HDB) on Wednesday released flash estimates for the fourth quarter ended Dec 31 which showed home prices rising 5.6 per cent compared to the previous quarter.

This is a dip from the 6.6 per cent gain in the third quarter last year and brings the total increase in HDB resale prices for 2007 to 17.4 per cent.

Housing anaylsts said this slowdown was expected due to various reasons, including a recent change in market sentiment to a more cautious mood.

Detailed figures for the quarter are not released yet, but analysts say the transaction volume in the fourth quarter have dipped significantly.

This is due to fewer property launches and quieter activity, and also unrealistic prices sellers are demanding. Experts say HDB prices are unlikely to soar too high, and will rise less than 10 per cent for 2008.

HDB also recently announced new flat supply in Punggol and Yishun under its Build-To-Order (BTO) programme, which builds flats only when a certain demand is reached.

It plans to offer about 4,800 new BTO flats in the first half of 2008.

It has also recently launched a plum site at Bishan for condo-style HDB homes to be built, with more such sites in Simei, Toa Payoh and Bedok to come.

The full data for the fourth quarter 2007 will be released at the end of the month, said HDB.