Resale Hdb Flat Prices Up 1.6% In Q1

[neubie 2]

Resale prices of public housing rose by a smaller extent in the first quarter of the year as the median cash premium fell and the number of resale transactions shrank.

To further meet demand for flats, the Housing & Development Board yesterday rolled out four build-to-order (BTO) projects which can yield a total of 3,185 new units - the largest supply of BTO flats made available in a single launch since 2002.

According to HDB data yesterday, the resale price index (RPI) in Q1 was 174.8 - up 1.6 per cent from Q4 last year. In Q4, the index had risen by 2.5 per cent from the previous quarter.

Looking across different flat types, the median resale price for an executive flat in Q1 was $550,000, compared with $548,000 in Q4. A five-room flat went for a median price of $463,000 in Q1, versus $460,000 in Q4.

The proportion of resale cases transacting above valuation in Q1 was 96 per cent, unchanged from the previous quarter. But the median cash-over-valuation (COV) among all resale transactions fell, to $21,000 in Q1 from $23,000 in Q4.

For executive flats, the median cash premium was $32,000 in Q1, unchanged from Q4. For five-room flats, the figure was $22,000, down from $25,000.

Resale activity quietened down slightly in Q1, with the number of resale transactions sliding by about 4 per cent to 6,228 from 6,454 in Q4.

'The cooling measures have certainly been effective in both eradicating investors' speculation in the HDB resale market as well as encouraging owner-occupation for resale flats,' said PropNex CEO Mohamed Ismail.

'This more gradual growth for the RPI looks set to continue as we (PropNex) can see growth of up to 2.6 per cent in our median resale prices for April 2011 from 1Q11,' he said.

Mr Ismail believes that the RPI could increase by about 8 per cent in total this year. Last year's climb was 14.1 per cent.

Lower cash premiums have been good news for home seekers but Mr Ismail suggested that COVs might soon buck the falling trend. Data from his firm shows COV levels rising in April from Q1.

Apart from releasing fresh statistics yesterday, HDB also rolled out four BTO projects at Hougang, Sembawang, Sengkang and Punggol.

Of the 3,185 new flats offered, the majority or 1,797 units are four-roomers. There are also 105 two-room units, 541 three-roomers and 742 five-roomers.

Hougang Parkview will have 792 flats and a five-roomer there is expected to cost $333,000 to $404,000. At the 578-unit Montreal Ville in Sembawang, the largest flat type is a four-roomer and one is priced at $255,000 to $310,000.

Over at Anchorvale Cove in Sengkang, there will be 1,011 flats and a five-roomer would go for $354,000 to $456,000. Waterway Terraces II in Punggol will have 804 flats and a five-roomer is priced at $400,000 to $484,000. These two estates are premium projects.

Buyers with lower budgets can consider the standard flats at Hougang Parkview and Montreal Ville, while those who are prepared to pay more for better locations and special designs can opt for premium flats at Anchorvale Cove and Waterway Terraces II, HDB said.

With the latest launches, HDB has offered 8,033 BTO flats in the first four months of the year. It plans to offer 22,000 new BTO flats this year if demand is sustained.

[forgotten 1]

How will resale prices fall when MBT keeps increasing BTO unit prices every quarter?

Punggol BTO that was launched yesterday

Flat Type Floor Area (sqm) Internal Floor Area (sqm) No. of Units Indicative Price Range ($)

3-Room 67 65 118 $201,000 - $242,000

4-Room 92 90 440 $307,000 - $390,000

5-Room 112 110 246 $400,000 - $484,000

Our CPF will get wiped out.

Edited April 26, 2011 by forgotten

[therat 18]

wiped out is 1 thing.

To come out hard CASH during old age to pay the HDB loan is horrible.

Alot of new couple is taking max 30 yrs loan but how many of them take note of VL.

[forgotten 1]

wiped out is 1 thing.

To come out hard CASH during old age to pay the HDB loan is horrible.

Alot of new couple is taking max 30 yrs loan but how many of them take note of VL.

Traditional media hardly mentions about VL.

Many old folks only get to know about it only after they receive HDB letter to top up cash.

Edited April 27, 2011 by forgotten

[therat 18]

Traditional media hardly mentions about VL.

Many old folks only get to know about it only after they receive HDB letter to top up cash.

hardly mentions b'coz someone keep on insist HDB price is affordable.

couple with 4k salary , buy 4 rm flat. Take 30 yrs loan.

Not need to come out cash. This is affordable.

But they never highlight VL and the CPF contribution to OA will reduce once pass 40 or 45 yrs old.

When interest start to pick up, then they will know what is the so-call affordable

[Jgal 0]

Actually, we have made a calculation.

There is no way a couple earning 4k to own a 4-rm hdb without any cash upfront, and just use CPF.

Here's the calcuation.

Total income : 4k

Cpf contribution (refer : http://www.cpf.gov.sg/cpf_info/Online/Contri.asp)

Ordinary Account $ 920.08

Medisave Account $ 280.00

Special Account $ 199.92

--------------

Total Contributions $ 1,400.00

===========

Total AO accumlated after 6 mths : $5520.48

Assumming $5520.48 is used totally for min downpayment at the time of signing of the Agreement for Lease ( exclude stamp fee and legal fee) , which is 5% of the cost of the unit. Then , the bto flat got to be sold at $110,409.60. BTW , even hougang BTO is selling at 250k upwards.

Edited April 27, 2011 by Jgal

[chronograph 0]

What's VL? I tot new unit from HDB, no VL? or is it WDL?

wiped out is 1 thing.

To come out hard CASH during old age to pay the HDB loan is horrible.

Alot of new couple is taking max 30 yrs loan but how many of them take note of VL.

[therat 18]

What's VL? I tot new unit from HDB, no VL? or is it WDL?

VL is Valuation Limit.

The Valuation Limit is the lower of the purchase price or the value of the property at the time of purchase

This VL is from CPF and affected all property regardless is new or resale with or without grant.

Basically it limit how much your CPF can use to pay your property.

http://ask-us.cpf.go...RId=&SourceId=0

Q: What happens if my HDB loan is still outstanding when my total CPF Withdrawals reach the Valuation Limit (VL)? Can I withdraw more of my CPF savings?

A: If your housing loan is still outstanding when the total CPF usage for the flat reached the VL and you are below the age of 55 years, you may continue to use your CPF Ordinary Account savings to repay the housing loan if you can set aside the prevailing Minimum Sum cash component. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet the prevailing Minimum Sum cash component.

However, if you are 55 years and above when the VL is reached, you may use the excess CPF Ordinary Account savings to repay the housing loan after setting aside your Minimum Sum cash component shortfall.

Don't forget Minimum Sum Component cap is moving up yearly.

Presently is $123K

[forgotten 1]

Actually, we have made a calculation.

There is no way a couple earning 4k to own a 4-rm hdb without any cash upfront, and just use CPF.

Here's the calcuation.

Total income : 4k

Cpf contribution (refer : http://www.cpf.gov.sg/cpf_info/Online/Contri.asp)

Ordinary Account $ 920.08

Medisave Account $ 280.00

Special Account $ 199.92

--------------

Total Contributions $ 1,400.00

===========

Total AO accumlated after 6 mths : $5520.48

Assumming $5520.48 is used totally for min downpayment at the time of signing of the Agreement for Lease ( exclude stamp fee and legal fee) , which is 5% of the cost of the unit. Then , the bto flat got to be sold at $110,409.60. BTW , even hougang BTO is selling at 250k upwards.

Ahlamah. MBT 2 days ago still claimed that a graduate who works 1 year will have enough cash to buy a HDB !!

The house no need to renovate, no need to install toilet bowl, windows ah?

I don't know what to say...

Edited April 27, 2011 by forgotten

[forgotten 1]

Therat,

I like your new avatar

Edited April 27, 2011 by forgotten

[therat 18]

Thanks!

You like it, you can have it.

I got it in facebook

[therat 18]

Ahlamah. MBT 2 days ago still claimed that a graduate who works 1 year will have enough cash to buy a HDB

The house no need to renovate, no need to install toilet bowl, windows ah?

I don't know what to say...

Not just the toilet bowl.

He also forget wedding dinner, wedding photo.

May be he expected ppl just ROM then buy house. Can liao.

Want to eat. That's easy. Go hawker centre.

[chronograph 0]

thanks for the clarification.... I should be safe, should be able to repay loan in 4 years time.... if nothing goes wrong. Keeping my finger cross.

VL is Valuation Limit.

The Valuation Limit is the lower of the purchase price or the value of the property at the time of purchase

This VL is from CPF and affected all property regardless is new or resale with or without grant.

Basically it limit how much your CPF can use to pay your property.

http://ask-us.cpf.go...RId=&SourceId=0

Don't forget Minimum Sum Component cap is moving up yearly.

Presently is $123K

[marshmallow 0]

Ahlamah. MBT 2 days ago still claimed that a graduate who works 1 year will have enough cash to buy a HDB !!

The house no need to renovate, no need to install toilet bowl, windows ah?

I don't know what to say...

Not just the toilet bowl.

He also forget wedding dinner, wedding photo.

May be he expected ppl just ROM then buy house. Can liao.

Want to eat. That's easy. Go hawker centre.

also no need floor tiles, stick with the HDB given cement screed since it's a big hit now. go for industrial look

[therat 18]

also no need floor tiles, stick with the HDB given cement screed since it's a big hit now. go for industrial look

ya..cement screed.. I remember that.

hot day.. floor cold cold. Very good when sleep on the floor except back very pain.