Resale Prices Of HDB Homes Up 1.4% In Q2

Source : 938live.sg , 24th July 2009

The resale prices of HDB flats rose by 1.4 percent in the second quarter of 2009.

This comes after a slight drop of 0.8 percent in the three months ending March.

The jump in the second quarter was higher than an initial estimate of a 1.2 per cent increase made earlier this month.

Resale transactions also rose, jumping from 6,400 cases in the first quarter, to 10,000 cases in the 2nd quarter.

The median cash-over-valuation or COV amount among all resale transactions continued its declining trend.

COV fell to $3,000 in the second quarter, down $1,000 from the 1st quarter.

CEO of real estate firm Propnex, Mohamed Ismail, said the lower COV made resale flats more attractive.

"COV has further declined, and this would have attributed for more buyers looking towards resale rather than the BTO or DBSS. Because either BTO or DBSS will take 3 to 4 years before they can get the keys to their respective houses. And this trend is expected to continue as long as the HDB COV is low, there will be greater demand."

HDB flats which sold above valuation accounted for 57 per cent of all resale transactions in the second quarter, down from 62 percent in the previous quarter.

HDB also announced plans to launch 6,000 new Build-to-Order flats over the next six months, of which some 2,400 units will be 3-room or smaller apartments.

The bulk of the new flats will be in Punggol.

In the HDB rental market, rents for 3-room, 4-room and executive flats fell by $100, but remained the same for 2-room and 5-room units.