Tag Archives: HDB Resale Prices

Are permanent residents driving up resale flat prices?

Posted on 17 Oct 2009 | Comments Off on Are permanent residents driving up resale flat prices?

IT IS easy to pin the blame on new migrants, given the news that Singapore let in a good 55,000 more permanent residents (PRs) in the year leading up to June. This means that the number of PRs grew by 11.5 per cent, the biggest jump in at least six years.

more permanent residents

As a PR cannot buy a new flat directly from the HDB, his cheapest option is a resale flat. Typically, PRs pick up three- to four-room flats before upgrading to bigger homes once they become fully fledged citizens.

Major property agency ERA did not allay suspicions of the PR link to rising prices when it revealed last month that PRs made up 40 per cent of buyers in its resale flat deals. Three years ago, they accounted for just 20 per cent of its buyers.

Since ERA-only deals account for about 30 per cent of the HDB resale market, many home-seekers are quick to conclude that PRs are to be blamed.

But HDB statistics show that PRs bought only about 20 per cent of resale flats this year. That proportion has stayed roughly constant over the past three years. Continue reading →

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More new HDB flats as resale prices climb

Posted on 2 Oct 2009 | Comments Off on More new HDB flats as resale prices climb

HDB resale prices are now at their highest level ever

The Housing and Development Board (HDB) is stepping up its supply of new flats to meet increased demand for public housing. The news came as flash estimates showed that prices of resale HDB flats rose 3.2 per cent in Q3.

The price increase comes after a 1.4 per cent rebound in Q2 following a marginal drop of 0.8 per cent in Q1. This means HDB resale prices are now at their highest level ever. The previous two peaks were in Q4 2008 and Q4 1996.

Analysts attributed the growth to the greater demand for resale flats in recent months.

Observed Eugene Lim, associate director for ERA Asia Pacific: ‘The surge in demand for HDB resale flats and the consequent rise in prices have been fuelled by a mix of upgraders, downgraders and the increasing population of permanent residents.’

There is also a ‘trickle-down’ effect from the growth in private property prices, which climbed 15.9 per cent in Q3.

But plans to boost the supply of new flats could mean that the price increase in the resale price index could see some moderation in future, said Minister for National Development Mah Bow Tan, who announced HDB’s plans yesterday. Continue reading →

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