: Value Investing Forum - Singapore, Hong Kong, U.S.

Full Version: HDB's Resale Price Index increases another 2.4%
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
I keep hearing the news of more supply coming on-stream. So when is it supposed to push prices down? So far, it's not working.......

Jan 3, 2011
HDB's Resale Price Index increases another 2.4%

By Linette Lin

PRICES for resale HDB flats continue to rise as the fourth quarter 2010 Resale Price Index (RPI) stands at 171.9, an increase of 2.4 per cent over the previous quarter.

However this is lower compared to the 4.0 per cent increase in the third quarter last year.

The RPI provides information on the general price movements in the public residential market.

Based on flash estimates, resale volume has declined by about 21 per cent in the fourth quater and median Cash-Over-Valuation (COV) is estimated to have fallen by $7,000 or 23 per cent, from $30,000 to $23,000.

To stem rising prices, HDB has ramped up its new flat supply significantly to meet the demand from first-timer households.

For 2011, HDB plans to offer 22,000 new flats under the BTO system and Sale of Balance Flats exercise, an increase from 17,700 in 2010.

The BTO supply will be supplemented by the housing units under the Design, Build & Sell Scheme (DBSS) and the Executive Condominium (EC) Housing Scheme which will yield more than 3,000 DBSS flats and 4,000 EC units.