First annual decline in Resale Price Index (RPI) for HDB since 2005

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Average prices of HDB resale flats fell for the first time since 2005 last year. Data released by the Housing and Development Board (HDB) showed that the Resale Price Index  RPI fell 1.5 per cent from 204.8 ito 201.7 n then the last three months of the year 2013 .

Year
Quarter
Index
% Change from Previous Quarter
2013
IV
201.7
-1.5%
III
204.8
-0.9%
II
206.6
0.5%
I
205.5
1.3%
2012
IV
202.9
2.5%
III
197.9
2.0%
II
194.0
1.3%
I
191.6
0.6%
2011
IV
190.4
1.7%
III
187.2
3.8%
II
180.3
3.1%
I
174.8
1.6%
2010
IV
172.0
2.5%
III
167.8
4.0%
II
161.3
4.1%
I
155.0
2.8%
Source – HDB

The number of resale transactions for 2013 dropped 28 per cent to 18,100 — the lowest volume since 1997 since HDB started keeping records. Subletting transactions also fell by 3 per cent from 7,505 cases in Q3 of last year to 7,268 cases in the fourth quarter.

Resale Cases Registered between 1st Quarter and 4th Quarter 2013
Quarter
1-Room
2-Room
3-Room
4-Room
5-Room
Executive*
Total
1Q2013
1
159
1,362
1,523
962
328
4,335
2Q2013
3
185
1,640
1,922
1,070
415
5,235
3Q2013
2
172
1,377
1,670
969
339
4,529
4Q2013
1
132
1,251
1,524
784
309
4,001
Total
7
648
5,630
6,639
3,785
1,391
18,100

 

Source – HDB

Fall in HDB resale price is expected due to the many measures imposed by the government especially the mortgage servicing ratio of 30 per cent and also the maximum loan term of 25 years which I have mention in my previous blog entry in Aug 2013.  This measures reduce the buyers’ ability of getting a higher loan to buy a bigger flat. In addition, Singapore Permanent Resident Households need to wait three years from the date of obtaining SPR status, before they can buy a resale HDB flat. The impact of these policies announced recently on HDB resale prices has slowly surfaced. 

Median Cash Over Value or COV have also drop by quite a fair bit. Interestingly, look at Punggol’s figure in the table below. Average COV is $0 for 4 and 5 Room flats. Will COV continue to drop further this year? Will it draw more potential buyers back to the resale market? We shall see.

Median Cash-Over-Valuation (COV) for Resale Cases Registered in the 4th Quarter 2013
Town
1-Room
2-Room
3-Room
4-Room
5-Room
Executive
Ang Mo Kio
*
$10,000
$15,000
*
*
Bedok
*
$5,000
$15,000
$23,500
*
Bishan
*
$32,500
*
*
Bukit Batok
$7,000
$10,000
$20,000
*
Bukit Merah
*
*
$18,000
$30,000
$42,500
Bukit Panjang
*
$8,000
$3,000
$25,000
Bukit Timah
*
*
*
Central
*
*
*
*
Choa Chu Kang
*
$0
$5,000
*
Clementi
$8,000
$15,000
*
*
Geylang
*
$8,900
$15,000
*
*
Hougang
$5,000
$5,000
$10,000
*
Jurong East
$7,500
$10,000
*
*
Jurong West
*
$9,000
$5,000
$2,000
$20,000
Kallang/Whampoa
*
$10,000
$30,000
*
*
Marine Parade
*
*
*
Pasir Ris
*
$6,500
$8,500
$19,000
Punggol
$0
$0
*
Queenstown
*
$10,400
$37,900
*
Sembawang
*
$4,500
$8,000
*
Sengkang
*
*
$3,000
$5,000
*
Serangoon
$12,000
$15,000
*
*
Tampines
$6,500
$9,500
$10,000
$30,000
Toa Payoh
*
$9,300
$28,000
*
*
Woodlands
*
$8,000
$3,300
$6,000
$23,000
Yishun
$3,900
$7,000
$12,900
*

 

Source - HDB, Straits Time



Post you might be interested -
Cooling measures – Maximum tenure for HDB housing loans cut to 25 years
HDB COV $20000, lowest in 30 months, since 2011
More HDB resale with $0 COV
COV going south again
 


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3 responses

  1. if u study technically last year for price and index, it’s berish divergence. So the price will most likely drop. That’s my assumptions only.

  2. Thanks for Sharing This Post. Nice Blog

    Flats in Dwarka

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