HDB Resale Flats Continue Climb As Private Homes Lose Steam

Source : The Straits Times, July 25, 2008

Housing Board resale flats continue to draw buyers as private homes lose their lustre.

Prices for HDB resale flats rose further by 4.5 per cent in the second quarter, higher than the 3.7 per cent increase from January to March.

The number of HDB resale transactions jumped by about 22 per cent, from about 6,360 cases in the first quarter to about 7,760 cases in the second. -- FILE PHOTO: ST

Continuing its lacklustre, private home prices rose just 0.2 per cent between April and June, compared with 3.7 per cent a quarter earlier.

The number of HDB resale transactions jumped by about 22 per cent, from about 6,360 cases in the first quarter to about 7,760 cases in the second.

The median Cash-Over-Valuation (COV) amount of all resale transactions in the second quarter was $20,000, a slight drop from the COV of $21,000 in the earlier quarter, said HDB on Friday.

Cases requiring COV made up 90 per cent of all resale transactions in this quarter, with the rest below valuation.















New flat supply
In the first six months, HDB launched a total of 4,524 new flats under the Build-To-Order (BTO) system, which provides the main supply of new flats.

Subject to demand, HDB plans to offer about 3,900 new flats under the BTO system over the next six months in Punggol, Sengkang and Bukit Panjang.

The total planned BTO supply of 8,400 new flats for this year will exceed last year's 6,000 units and 2006's 2,400 units.

This new flat supply will be in addition to flats offered under the balloting exercise for surplus replacement SERS flats, and balance flats from previous offers. HDB will provide more details of the BTO flats when the projects are launched

In tandem with rising rents for private residential properties, sublet rents for HDB flats also rose in the second quarter. The number of subletting transactions went up by about 15 per cent - from about 3,580 cases in the first quarter to about 4,120 cases in the second.

The total number of HDB flats approved for subletting rose to about 20,200 units, compared to about 18,700 units in the first three months.