PRICES of Housing Board flats have reached a historical record,
rising 1.4 per cent in the second quarter this year, reversing a
first-quarter dip of 0.8 per cent.
Fresh data released from the HDB on Friday shows the resale
price index rising to 140.2 - beating the previous record set in
the fourth quarter of last year when it hit just over 139.
The figures have come in slightly higher than flash estimates
released earlier this month which showed that prices rose 1.2 per
cent.
Sales of HDB resale flats also surged 58 per cent, reflecting
improved market sentiment, to reach 10,184 transactions in the
second quarter, compared to 6,446 in the first quarter.
Year on year, second quarter sales rose 31 per cent compared to
the 7,763 units sold in the same period last year. Analysts
attribute the healthy sales volume to the economic outlook which
has grown more optimistic in the second quarter.
Industry observers also noted that resale flats were popular as
the cash needed upfront, or cash-over-valuation (COV), to buy a
resale flat was low or approached zero.
Friday's HDB data showed that the median COV continued to
decline, falling to $3,000 in the second quarter, compared to
$4,000 in the first quarter.
The number of flats which sold above valuation also declined
from 62 per cent of all transactions in the first quarter, to 57
per cent in the second quarter.
The remaining 43 per cent was sold at or below valuation, said
HDB.
Meanwhile, rental rates for HDB flats did not register drastic
movements. Median sublet rents for two-room and five-roomer flats
for the second quarter stayed the same, but fell by $100 for three
room, four room and executive flats.
Rental transactions increased by 9.6 per cent to 3,862 cases in
second quarter compared to the first quarter. But compared to the
same period last year, it fell by 6.3 per cent.
The total number of HDB flats approved for subletting rose to
about 23,200 units as at second quarter, compared to 22,800 units
in the first quarter.
http://sgblogs.com/entry/resale-prices-record-highs/365534
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