1st QUARTER 2013 FLASH ESTIMATES

HDB resale price growth down 50% from 4Q12

HDB’s Resale Price Index (RPI) for the first quarter in 2013 went up 1.2% to 205.4 points over the last quarter. This is the quarter-on-quarter RPI growth since 1st Quarter 2012.

“The HDB resale prices are beginning to show signs of moderation as witnessed by the more than 50% drop since last quarter. This is largely contributed by the introduction of the January cooling measures as well as the Mortgage Servicing Ratio (MSR) which have impacted the purchasing power of homebuyers. As such, I expect the pace of growth for HDB resale prices to be muted especially for larger flats,” commented Mr Mohamed Ismail, CEO of PropNex Realty.

“Overall, HDB resale prices for the entire 2013 will be between 4 to 5% as demand for resale flats will be reduced due to singles being able to purchase BTO flats directly from HDB, as well as a larger supply of BTO flats. In May, HDB will offer 4,850 BTO flats in Choa Chu Kang, Hougang, Jurong West, Sembawang, and Woodlands. An additional 3,000 flats will be launched in a concurrent Sales of Balance Flats (SBF) exercise” concluded Mr Ismail.

Private home prices register muted growth in 1Q13

In the private property market, URA’s price index saw a mere 0.5% increase Q-on-Q, with the Core Central (CCR), Rest of Central (RCR) and Outside Central (OCR) regions chalking up slower increases of 0.4%, 0% and 1.7% respectively from the last quarter.

“With the introduction of the cooling measures in January, price growth for private properties is expected to remain slow moving for the entire 2013—particularly in CCR and RCR. However, mass market properties in the OCR will continue climbing due to their more budget friendly prices and sustained demand from genuine first time homebuyers and investors” remarked Mr Ismail.

“For the entire 2013, I expect overall prices to increase by between 1 to 3%. On the other hand, OCR properties are expected to increase by up to 5%,” concluded Mr Mohd Ismail.

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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