Prices of resale Housing and Development Board (HDB) flats rose 3.8 per cent in the fourth quarter of 2009, reaching the highest level since 1990, when records of such data began.

The Resale Price Index of public flats stood at 150.7 in the fourth quarter of last year. But some said that spiralling prices will not deter potential buyers.

Despite the record high prices, one real estate consultant said prices of most of the larger HDB units have not increased dramatically.

Donald Han, managing director, Cushman & Wakefield said: “If you look at the overall pricing for the four- and five-room flats, they are all still within the norm, and very much far apart from the kind of headline transaction news that you get of about S$700,000, S$800,000 in that sense.”

According to some others, resale flats have strong potential to rise further due to demand from newly formed families and permanent residents.

Nicholas Mak, real estate lecturer, Ngee Ann Polytechnic said: “Going forward the case of price growth is not going to be 3 to 4 per cent every quarter. Otherwise, we could see very high unsustainable levels for the HDB resale market.

“It is more likely going to grow at a pace of between, perhaps eight to maybe as high as 15 per cent for the whole of 2010.”

The HDB said it will continue to launch more Build-to-Order (BTO) projects this year, if there is a sustained demand for new flats. And it said it will continue to ensure that there is an adequate supply of flats to meet the prevailing housing needs.

For a start, 1,300 BTO flats in Choa Chu Kang and Hougang will be offered for sale on Tuesday. But it will take up to four years before the BTO flats are ready.

So for those who cannot wait, resale flats are one option, thereby, driving up demand and prices.

The HDB will release its detailed resale price data and public housing data for the fourth quarter on January 22.

Source : Channel NewsAsia – 4 Jan 2010

Courtesy of HDB Property News

Another 1,500 units to come in February; some 12,000 could be offered this year

THE Housing and Development Board yesterday launched two build-to-order (BTO) projects at Choa Chu Kang and Hougang, offering 1,291 flats.

The agency plans to release another 1,500 units at Punggol and Woodlands next month. And if demand stays strong, it could make about 12,000 new BTO flats available this year.

PropNex CEO Mohamed Ismail expects to see high subscription rates of at least five times for the just-released flats, with those at Hougang possibly being more popular.

Buangkok Vale at Hougang will offer 699 standard flats, comprising 128 two-room units, 113 three-roomers and 458 four-roomers.

The estate is bounded by Buangkok Green and Yio Chu Kang Road and is close to Hougang and Buangkok MRT stations. Other nearby amenities include Hougang Mall, Hougang Plaza and Hougang Sports Hall.

Selling prices range from $88,000 to $111,000 for a two-roomer, $142,000 to $182,000 for a three-roomer and $231,000 to $288,000 for a four-roomer.

According to HDB, a comparable four-room resale flat near Buangkok Vale costs $310,000 to $356,500.

Limbang Green at Choa Chu Kang will offer fewer flats, and a larger proportion of them will be three-room or smaller. There will be 592 units, comprising 276 studio apartments, 128 three-room flats and 188 four-roomers.

The estate is at Choa Chu Kang Drive, near Yew Tee MRT station and other amenities such as Yew Tee Square and Choa Chu Kang Sports Hall.

Buyers can expect to pay $64,000 to $89,000 for a studio apartment, $140,000 to $169,000 for a three-room flat and $226,000 to $278,000 for a four-roomer.

A comparable four-room resale flat near Limbang Green costs $325,000 to $365,000.

Mr Ismail says that buyers tend to seek four-roomers, and because Buangkok Vale offers more of these, it could be more popular than Limbang Green.

Home seekers have until Jan 18 to submit applications for the new BTO flats.

Demand has been strong for new flats launched recently. For instance, some types of flats at two BTO projects in Queenstown were almost 12 times subscribed when applications closed last month.

Demand has also been high for resale flats, pushing prices up.

According to flash estimates, resale flat prices rose 8.1 per cent in 2009 from a year ago.

Mr Ismail believes that the new BTO projects are unlikely to dampen resale flat prices, given the new units will not be ready for three or four years.

‘Those who cannot wait will still have to turn to the resale market,’ he said.

Source : Business Times – 6 Jan 2010