HDB's Resale Price Index increases another 2.4%

[mr funny]

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_620113.html

Jan 3, 2011

HDB's Resale Price Index increases another 2.4%

By Linette Lin


PRICES for resale HDB flats continue to rise as the fourth quarter 2010 Resale Price Index (RPI) stands at 171.9, an increase of 2.4 per cent over the previous quarter.

However this is lower compared to the 4.0 per cent increase in the third quarter last year.

The RPI provides information on the general price movements in the public residential market.

Based on flash estimates, resale volume has declined by about 21 per cent in the fourth quater and median Cash-Over-Valuation (COV) is estimated to have fallen by $7,000 or 23 per cent, from $30,000 to $23,000.

To stem rising prices, HDB has ramped up its new flat supply significantly to meet the demand from first-timer households.

For 2011, HDB plans to offer 22,000 new flats under the BTO system and Sale of Balance Flats exercise, an increase from 17,700 in 2010.

The BTO supply will be supplemented by the housing units under the Design, Build & Sell Scheme (DBSS) and the Executive Condominium (EC) Housing Scheme which will yield more than 3,000 DBSS flats and 4,000 EC units.

[wenqing]

Primary culprit is the there is not enough new flats and under supply of new flats.

Couples rather buy resale flats than wait 3-5 years for BTO which cause resale prices to push up.

Even if they willing to wait for new flats, still must ballot.

Balloting is always a sign of not enough flats for everyone.

Plus new flats are also not cheap anymore.

Plus PRs and New Citizens going after resale flats.

Too many people chasing too few housing.

ICA, URA, SLA and HDB did not talk to each other enough thus causing bad planning.


As long as Mah Bow Tan does not want to go back to the days of Walk In Selection for ready built flats, this problem of inflated-prices will continue for good.

First time buyers are the ones that suffer the most.