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HDB resale prices stabilize with COVs dipping
Singapore Property Market News and Analysis

Latest Property Real Estate News - Published on 02/04/2012

The 1Q12 flash estimates released by HDB today reflects the impact of increased income ceiling, bumper release of 25,000 new BTOs and Sale of Balance flats in 2012 as well as HDB’s commitment to speed up the queue process and chances for first-timers in getting their homes. These have made many first-timers to switch from the resale market to consider new BTO flats.
As such the HDB Resale Price Index (RPI) at 191.6 saw marginal increase of just 0.6% over 4Q2011, marking the lowest growth (since 3Q2006) and a dip of 1.1% from 4Q2011.

“The flash estimate results are as predicted as according to PropNex data, the median Cash-Over-Valuations (COVs) are showing a declining trend to an overall $25,000 since January 2012, a reduction of $7,000 from 4Q2012,” explained PropNex CEO Mr Mohamed Ismail.

2011 3-rm 4-rm 5-rm Executive Overall
October 30,000 33,000 38,000 52,500 34,000
November 28,000 33,000 35,000 51,000 32,000
December 25,000 32,000 31,000 48,000 30,000

2012 3-rm 4-rm 5-rm Executive Overall
January 20,000 29,000 30,500 45,000 25,000
February 24,750 25,000 27,000 38,000 25,000
March 20,000 27,500 30,000 52,500 25,000
Median COV M-on-M, Source: PropNex Data

2011 3-rm 4-rm 5-rm Executive Overall
1Q2011 20,000 22,000 23,000 31,000 22,000
2Q2011 28,000 33,000 35,000 45,000 32,000
3Q2011 30,500 38,000 40,000 55,000 36,500
4Q2011 28,000 33,000 35,000 48,000 32,000
Median COV Q-on-Q, Source: PropNex Data

“HDB resale market prices have reached its peak and are not expected to further increase in price in the coming quarters as buyers are becoming reluctant to pay high COVs. The RPI has consolidated its high prices and growth will be less than 1% and I am not surprised to see a negative increase in prices towards the end of 2012. Overall, the HDB price increment will be muted with no significant growth in the coming months,” commented Mr Ismail.

Is it the Right Time to Buy HDB Resale: Lower COVs

For those who are not willing to wait in the queue and for the completion of BTO flats or who do not meet the requirements, according to Mr Ismail, now is the best time to start the search for your ideal HDB resale flat, given the fact that resale flat prices are stabilizing and that COV levels are dipping.

However, he cautioned that the supply of resale flats may remain limited due to the Minimum Occupation Period for home owners. The HDB resale market is determined by the demand and supply forces.


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

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