Resale HDB and private property prices growth are stabilising

THE relentless pace of rising Housing Board (HDB) resale flat prices over the past year or so has finally met some resistance as prices rise at a slower rate.

Advance estimates released by the HDB on Monday showed that for the three months ended Dec 31, resale flat prices rose 2.4 per cent compared with the previous third quarter of 2010.

In the third quarter, resale prices had risen at a markedly faster pace of 4 per cent from the second quarter of 2010.

The latest data brings the total rise in HDB resale flat prices for 2010 to about 13.3 per cent – a fresh record for prices.

However, the 2.4 per cent fourth quarter gain is the smallest quarterly rise since the second quarter of 2009.

The highest growth rate posted in a calendar year was in 2007 when resale flat prices shot up by 16.6 per cent.

On the private residential front, Mr. Ismail attributes the slow-down in growth to a lower upward trend in the Rest of Central and Outside Central areas, which rose 1.7 percent and 1.6 percent respectively, were largely due to the resistance from buyers for increasingly expensive projects in the resale property market.

Li Hiaw Ho, executive director of CBRE Research also explained that the “total rise of 17.6% in 2010 from end-2009 levels represents a vast improvement in private home prices when compared to a rise of only 1.8% in 2009 and a fall of 4.7% in 2008. At 194.8 points, the Q4 2010 residential price index is also an all-time high and it has surpassed the 1996 market peak by 7.4%.”

Mr. Li noted that this year will see “the highest volume of 15,500 to 16,000 new private homes ever sold.” He said that since the implementation of the cooling measures, “buying activity has persisted because of healthy economic conditions, high liquidity and record low interest rates. Some home-buyers also chose to buy homes last year in anticipation of further price hikes in 2011.”

Mr. Ismail also anticipates foreign investors to continue to drive property projects in the Core Central and Rest of Central areas, leading to growth of about 1 to 2 percent per quarter in private residential prices.

Source: &

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