The first quarter of 2010 has shown continuous growth in public housing as reflected by HDB’s Resale Price Index’s (RPI) upward trend. The 2.8% increase from 4Q09 is mainly fueled by Median Cash-Over-Valuation (COV) levels stabilizing an overall $25,000 amongst all resale transactions over the period of the quarter.

3-room and 4-room transactions, which accounted for 67% of all resale transactions in 1Q10 are fetching Median COVs of $22,000 and $25,000 respectively while 5-room and executive flats were transacted at a Median COV of $28,000 and $30,000 respectively.

“This further proves that market tolerance is being reached amidst the government’s continuous release of Built-To-Order (BTO) flats.” explains PropNex CEO Mr Mohamed Ismail.

A total of about 5,100 new BTO flats have been launched by HDB in 1Q10 alone, with an expected 12,000 new flats or more to be launched for the rest of this year. “Moving forward, COVs are likely to remain at current levels,” says Mr Ismail.

HDB saw another record high despite the first quarter having the shortest month of February and the Chinese New Year holidays. It still proved to show a healthy

in 2010 with HDB showing a total of 8,484 in resale transactions for 1Q10. This is a 7.5% and 7.6% increase over 1Q08 and 1Q09 respectively.

Given this growth, Mr Ismail revises his forecast for the RPI to move upward altogether for 2010 by 6-9%.