Posted: 03 October 2011 0922 hrs

Singapore

Flash estimates on property prices show that buyers are willing to pay more for HDB resale flats while those purchasing private property are showing caution.

HDB’s flash estimate of the 3rd Quarter 2011 Resale Price Index (RPI) climbed 3.8 per cent in the third quarter compared to the 3.1 per cent rise seen in the second quarter.

In the first three months of the year, the rise was 1.6 per cent.

The rise comes as the Housing & Development Board ramps up the supply of new flats.

Between January and September, the HDB has offered about 23,800 new flats for sale, with the latest being in September with a bumper supply of 8,262 flats being offered under the Built-to-Order (BTO) and Sale of Balance Flat exercises.

Next month,another 4,200 BTO flats will go up for sale in various towns, such as Bedok, Bukit Panjang, Hougang, Punggol and Yishun.

The HDB says it’s on track to deliver 25,000 BTO flats for the whole of this year and next year, and flat buyers can look forward to a similar supply of 25,000 BTO flats.

The acceleration in public housing appears to have had some impact on private property with the Urban Redevelopment Authority (URA) reporting a modest 1.3 per cent rise in the third quarter flash estimates of the private residential property index, compared to the 2.0 per cent increase in the second quarter.

The rate of increase in private residential property prices which has moderated for the 8th consecutive quarter saw the biggest increase of 2.1 per cent for private non-landed property outside the central region.

The flash estimates, compiled based on transaction prices in caveats lodged and information on the number of new units sold, saw property in the rest of the central region registering a 1.1 per cent increase while those in the core central region rose 0.8 per cent.

– CNA/sf