Hdb Resale Flat Prices Continue To Rise

[therat 18]

http://www.channelnewsasia.com/stories/sin...1088680/1/.html

SINGAPORE: HDB's Resale Price Index continues to rise with the figure going up by four per cent in the third quarter.

Prices had risen by 4.1 per cent in the second quarter.

However, resale transactions fell by about 10 per cent, from 9,114 cases in the second quarter to 8,205 cases in the third quarter.

HDB said this was largely due to the 25 per cent decrease in the monthly resale volume from August to September.

The median Cash-Over-Valuation amount among all resale transactions remained at $30,000 while the proportion of resale cases transacting above valuation remained at 96 per cent.

HDB said as most of the transactions for the third quarter were submitted before the announcement of property cooling measures on August 30, the impact of the move is not fully reflected in the data.

The board added it will continue to monitor the prices and volume of resale transactions and update the figures again at the end of the fourth quarter.

Separately, HDB said it will continue to ramp up its new flat supply significantly to meet the demandd of first-timer households.

1,320 flats under the Build-to-Order (BTO) Scheme in Bukit Panjang and Sengkang will be launched on Tuesday, October 26.

HDB will also launch about 2,200 flats in Yishun and Punggol in November and December this year.

This will bring the total BTO flat supply for 2010 to about 16,100, compared to the 9,000 BTO flats in 2009.

Including the August 2010 Sale of Balance Flats, the total new flat supply for 2010 will reach 17,700.

HDB will also release more land for the development of Design, Build and Sell Scheme (DBSS) flats and Executive Condominiums (EC) units to provide choices for the higher-income households.

Based on the land sales scheduled for this year, there will be about 3,000 units under DBSS and 4,000 units under the EC Housing Scheme.

Developers will launch the EC and DBSS units for sale later this year or next year. - CNA/fa

[matrix0405 0]

Though we cant see the effect of the new cooling measures in Q2, prices are obviously still running. Recent BTO still easily 3x over subscribed. Recent EC's breakeven price has reached $600 psf. After over a year of policy to take speculators out of the market, market in still hot .... it means either ineffective policy or the demand is very real.

[bepgof 20]

Though we cant see the effect of the new cooling measures in Q2, prices are obviously still running. Recent BTO still easily 3x over subscribed. Recent EC's breakeven price has reached $600 psf. After over a year of policy to take speculators out of the market, market in still hot .... it means either ineffective policy or the demand is very real.

1Q2010qoq +2.8%

2Q2010qoq +4.1%

3Q2010qoq +4%

http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...Document#Detail

Data indicated HDB resale heat now is in "western" part of Singapore. The "flying arrow" has lost its strength, collasping soon. Low tide is coming.

My forecast:

4Q2010qoq +0% ~+1%, no harm to predict right?

Edited October 23, 2010 by bepgof

[coldflamez 0]

1Q2010qoq +2.8%

2Q2010qoq +4.1%

3Q2010qoq +4%

http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...Document#Detail

Data indicated HDB resale heat now is in "western" part of Singapore. The "flying arrow" has lost its strength, collasping soon. Low tide is coming.

My forecast:

4Q2010qoq +0% ~+1%, no harm to predict right?

I think the increase will still be around 2-3%. That is because even though COV has dropped, people are still paying 20-30k COV. The unchanged fact is still that the supply is less than the demand.

[Sam Lee Poh Huat 0]

1Q2010qoq +2.8%

2Q2010qoq +4.1%

3Q2010qoq +4%

http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...Document#Detail

Data indicated HDB resale heat now is in "western" part of Singapore. The "flying arrow" has lost its strength, collasping soon. Low tide is coming.

My forecast:

4Q2010qoq +0% ~+1%, no harm to predict right?

Low tide is good esp we only hv sampan to paddle our way thru heights of cov wave.. let it be corrected so that the mass and horse can breath alittle better.. my guess is +0 or -1%

[rainforest 0]

Low tide is good esp we only hv sampan to paddle our way thru heights of cov wave.. let it be corrected so that the mass and horse can breath alittle better.. my guess is +0 or -1%

If the new BTOs are launched as HDB said there would be another 2000 units for NOV & Dec this year and another 22,000 units next year, then it should help alleviate the demand for resale some what. As long as the perception that oncoming supply will help stabilise prices ( no more hefty increases), demand will also not run ahead of itself.

Also, no one in his/her right mind would think that prices will continue to shoot up....... if it does , u know and i know what the government will do in April next year............so all will pacify for now.

Edited October 25, 2010 by rainforest

[bepgof 20]

If the new BTOs are launched as HDB said there would be another 2000 units for NOV & Dec this year and another 22,000 units next year, then it should help alleviate the demand for resale some what. As long as the perception that oncoming supply will help stabilise prices ( no more hefty increases), demand will also not run ahead of itself.

Also, no one in his/her right mind would think that prices will continue to shoot up....... if it does , u know and i know what the government will do in April next year............so all will pacify for now.

Must realise:

1. Market forces are at times, too difficult to predict.

2. BTOs not really "cheap", locations all "ulu ulu"

3. Sampan owners very "smart" and much educated - they want all the "goodsssss", don't want "badssss". In short, all are experts in "investment", want to high highest returns in shortest possible time - this really make MBT cries. Where got all good "all in one"?

4. BTOs schedule may be "delayed" when the markets forces changes, we shall see.

[Sam Lee Poh Huat 0]

BTO's or market forces all depends on how well/bad economy goes, yes its really hard to predict. Its always easy to paddle thru the waves but whats left on shore when the tide subsides is left to be seen. Riding against the wave needs some experience and experience could be the best/most expensive teacher for some. Just make sure u are wearing a life jacket while paddling your sampan and keep near to shore.