FOR IMMEDIATE RELEASE (1 October 2012)

3RD QUARTER 2012 FLASH ESTIMATES, UNEXPECTED RESULTS FOR HDB RESALE PRICES

HDB resale prices hit an all-time high

The HDB Resale Price Index (RPI) has inched 2.0% up to a new record high of 197.9, according to HDB’s release of the 3Q12 flash estimates today.
“The HDB resale price index is now at its historical peak as this increase of 2% is the highest in the last 4 quarters (since 3Q11, when the price index grew by 3.8%). This is somewhat unexpected as the increase came with the onset of a greater supply of BTO flats since 2011, and the moderation of HDB resale prices in the first 2 quarters of this year,” commented Mr Mohamed Ismail, CEO of PropNex Realty.

“One of the reasons for the increase in resale price index is that there is an increase in HDB resale activities in the second half of the year, which usually happens in the third quarter. Another reason is the continued strong and latent demand for resale flats, which is complemented by a strong economy, with finances of resale flat buyers remaining robust. With the HDB resale prices increasing by 3.9% for the first 9 months of the year, it is likely to hit between 5 to 6% for the entire 2012”, concluded Mr Ismail.

Private home prices heading for moderation

In the private property market, URA’s price index 3Q12 flash estimates saw a 0.5% increase Q-on-Q to another record high of 208.0, with the Core Central (CCR), Rest of Central (RCR) and Outside Central (OCR) regions chalking up incremental increases of 0.2%, 0.7% and 1.0% respectively.

“Private property prices are certainly heading towards price moderation. Prices in the OCR are leading the price growth with sustained demand from HDB upgraders and investors. Another noteworthy point is that the RCR is fast becoming more appealing to homebuyers and investors, with the narrowing price gap of properties in the OCR and RCR,” remarked Mr Ismail.

With increased supply anticipated, Mr Ismail expects prices to further moderate, resulting in an overall 1% to 2% growth in the private property price index for the entire 2012.

END

For media enquiries, please contact:

Carolyn Goh
Corporate Communications and Marketing Manager
P & N Holdings Pte Ltd (holding company of PropNex Realty)
480 Lorong 6 Toa Payoh #10-01 HDB Hub East Wing Singapore 310480
DID : (65) 6829 6968 / 98287834 | Main : (65) 6820 8000 | Fax : (65) 6829 6600
www.PropNex.com

Algene Hong
Corporate Communications Executive
PropNex Realty
480 Lorong 6 Toa Payoh #10-01 HDB Hub East Wing Singapore 310480
DID : (65) 6829 6966 | Main : (65) 6820 8000 | Fax : (65) 6829 6600
www.PropNex.com