Prices of resale HDB flats continue to climb
Posted by temasektimes on July 2, 2012
According to HDB’s flash estimates, resale prices rose by 1.3 per cent in the second quarter of this year, higher than the 0.6 percent growth in the first quarter of 2012 and reversing a trend of slow price growth in the previous two quarters.
HDB will release another 25,000 flats under its Build-To-Order (BTO) scheme in 2012, but it will not affect resale flat prices because most of the BTOs are still being built.
Speaking to queries from the media, Senior Vice President of local property firm PropNex, Lim Yong Hock, said:
“There’s still a wait so the impact won’t come in so soon. The impact will probably come in about one to two years’ time, when most of the BTOs are ready, and there’ll be more resale units in the market. Currently there’s still a shortfall of supply in the resale market.”
According to a property agent we spoke to, the continued rising prices of resale flats is caused by a genuine demand on the ground as a result of under-supply of new flats in previous years.
The prices of resale HDB flats have nearly doubled since 2006, thereby pricing many ordinary Singaporeans, especially newly-wed couples out of the housing market who now have to opt for BTO flats instead, thereby delaying marriage and starting families.