| |
| |
![]() |
| |
|
| |
|
| |
|
Further evidence that the rally in the property market is broadening into the lower-end mass market came yesterday with the resale price index of HDB flats reaching 107.9 points in the second quarter, up 2.9 per cent from three months before.
The preliminary data sparked optimism that prices will continue to rise, with some forecasting a 10-per-cent gain this year for this sector, against the Government's earlier 5-per-cent forecast. "The overall price increase is largely expected, as the resale HDB market is experiencing a filter-down effect caused in part by the private property market," ERA Singapore said in a statement.
Mr Eugene Lim, ERA Singapore's assistant vice-president, said price increases have been seen in "Bukit Merah, Queenstown and other mature estates near MRTs. The rest of the market is rising, but not as fast as these areas."
HDB flats in mature estates closer to the city area have been going for prices $50,000 to $80,000 above market valuations, said Dennis Wee Group vice-president Chris Koh. The resale price index's 2.9 per cent quarter-on-quarter increase compares with a 1.3-per-cent rise in the January-to-March period, and the almost-1-per-cent gain in the fourth quarter last year. From a year earlier, resale HDB prices were nearly 5 per cent higher.
"HDB prices were expected to increase 5 per cent for 2007. Because of the strong demand and positive economy, we've reached a 4-per-cent increase in the first half of this year," said PropNex chief executive officer Mohamed Ismail. He expects the HDB resale market to rise by 10 per cent this year, pushing it above the previous peak of 1999.
According to him, two groups of buyers are driving the HDB resale market. Those who profited last year from en bloc sales "have cash on hand, (but) can't afford a similar unit in the same area, so they move away from the city or downgrade. They can pay in cash because they have at least $800,000 to play with," Mr Koh said. Then, there are older buyers, he said — "planning for retirement" — who are selling off their private properties to boost retirement funds. TODAY/rose
|
