Saturday, July 29, 2006
[RealEdge] BT : HDB resales picking up
Published July 29, 2006 | |
HDB resales picking up Q2 price index up 1% from previous quarter and 1.2% from a year ago
By ARTHUR SIM
THE resale market for Housing and Development Board (HDB) flats continues to improve. Latest official figures show that HDB's resale price index rose by one per cent in Q2 2006 from the previous quarter. Resale transactions for four-room flats - the largest segment at 2,729 transactions - rose 1.1 per cent while the increase for five-room flats (1,611 transactions) was 6.7 per cent. The number of resale three-room transactions was also high - up 8.5 per cent - although average valuations remained unchanged. Similarly, resale transactions in executive condominiums rose 5.2 per cent but average valuations fell by 0.1 per cent (quarter-on- For four-room flats, the quarterly average valuation increased 0.2 per cent from the previous quarter's valuation. Five-room flats also saw a 0.2 per cent rise after dropping 0.1 per cent in the previous quarter. The most expensive four-room flats (by average valuation) are in Bukit Merah ($311,700) and Queenstown ($309,200). For five-room flats, the most expensive ones were in Queenstown ($420,000) and Marine Parade ($417,800). Propnex CEO Mohamed Ismail believes the buyers who have returned to the market are upgraders. 'I believe they make up around 60 per cent,' he said. He also said that the improving resale market - with between 80-90 per cent of sellers breaking even or making a small profit - has seen an increase in sellers, resulting in more choice for buyers. However, ERA Singapore assistant vice-president Eugene Lim noted that even though resale prices were 1.2 per cent higher than a year ago, it was still 3.7 per cent lower than previous peak prices of Q1 2005. This was, of course, before anti-cashback measures were put in place. By BT's calculation, the index is now 7.6 per cent above the low point in Q1 2002 but 7.5 per cent below the recent peak in Q1 2000. On the latest price index, Mr Lim said: 'It shows that prices have stabilised and any increase is based on genuine demand.' ERA also noted that the resale market has seen an increase of supply. Its data shows that in the last three months, high-floor four-room resale flats located within a five-minute walk to an MRT station changed hands for about $10,000-$20, Mr Lim also said a slowdown in the release of unsold HDB flats could have boosted the index. He noted that only 897 units were launched in its Walk-in-Selection programme in Q2 2006, compared with 3,297 in Q2 2005. |
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