Resale Flat Prices Increase, But Cov Premiums Drop 9% In Q1

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http://www.channelnewsasia.com/stories/singaporelocalnews/view/1124797/1/.html

SINGAPORE: The price of resale flats went up in the first quarter of 2011, but Cash-Over-Valuation premiums fell to S$21,000 - a 9 per cent drop from the previous quarter, according to data from the HDB.

Observers attribute the lower COV premiums to the government's cooling measures which took effect in the first quarter of this year.

Going forward, analysts have mixed views on the outlook for COV premiums.

"Currently the COVs have come to a point where it is not going any much lower. Based on our PropNex data, the COV for the month of April has already gone up to a median at S$23,000, which is where we were starting prior to the first quarter," said PropNex CEO Mohamed Ismail.

For the first quarter of 2011, the price of resale flats rose 1.6 per cent.

This is higher than the 2.5 per cent increase in the previous quarter.

Meanwhile, median sublet rents in Q1 remained relatively stable with increases from 1-room and 5-room flats and decreases from 2-room flats.

Subletting transactions rose by 8 per cent to 6,365 cases.

Some analysts believe COV premiums will likely continue to fall as a result of new supply coming on stream.

Separately, HDB said it will launch another 3,185 flats in Hougang, Sembawang, Sengkang and Punggol for sale under the April 2011 Build-to-Order BTO exercise.

This will bring the total supply of new BTO flats this year to 22,000, compared to the 16,000 BTO flats that were offered last year.

"I think the fact that there's going to be 22,000 new HDB dwellings up in the marketplace, and the government's ramping up in terms of its development missionary to develop more HDB properties...will mean vendors cannot hold on to their COV asking prices," said Mr Donald Han, vice chairman of Cushman and Wakefield.

Despite the supply of new flats, Mr Han believes there could be a one to two per cent uptake in HDB resale prices in the next one or two quarters.

Mr Ismail also thinks the resale prices will trend up, as new supply of BTO flats are not a perfect substitute for the resale units.

[therat 18]

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1124709/1/.html

HDB resale price increased 1.6% in Q1

By Linette Lim | Posted: 25 April 2011 1535 hrs

SINGAPORE: HDB resale prices increased in the first quarter of this year, albeit at a slower rate, as property cooling measures kicked in.

The Resale Price Index increased 1.6 per cent in Q1, compared with 2.5 per cent in the previous quarter.

Cash-Over-Valuation premiums dropped nine per cent or S$2,000 to S$21,000 from the previous quarter, with the proportion of resale cases transacting above valuation remaining at 96 per cent.

Data released from HDB also showed that the number of resale transactions fell by about four per cent to 6,228 cases in first quarter of 2011.

Median sublet rents in Q1 remained relatively stable with increases from one-room and five-room flats and decreases from two-room flats.

Subletting transactions rose by eight per cent to 6,365 cases.

The total number of HDB flats approved for subletting rose to about 36,400 units in Q1, compared to about 35,000 units in the previous quarter.

HDB also announced that it will launch another 3,185 flats located in Hougang, Sembawang, Sengkang and Punggol for sale under the April 2011 Build-to-Order (BTO) exercise.

In total, HDB said it will offer 22,000 new BTO flats in 2011 if demand is sustained.

Last year, a total of 16,000 BTO flats were offered.

In addition to the BTO flats, units under the Design, Build & Sell Scheme (DBSS) and the Executive Condominium (EC) Housing Scheme will be offered as well.

An EC site at Punggol with an estimated yield of 700 units, and two DBSS sites at Sengkang and Bendemeer Road with a potential yield of about 1,500 units, will be released for tender in May and June 2011 respectively.

- CNA/fa

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http://www.channelnewsasia.com/stories/singaporelocalnews/view/1124709/1/.html

Link appears to be dead.

Shows how statistics and government led media can misdirect the public.

The closest comparable transaction recently was up 3.5% on our bought price last quarter. Sure we have a number of things in our favour (high floor, location, unit type) but I am sure the new agencies are not likely to report that the governments knee jerk rule changes have still had little effect of resale unit prices.

RB