3Q 2012 private home prices rose 0.6%

By The Folks @PropTalk - October 29, 2012 No Comments

Singapore's private home prices in the third quarter rose 0.6% from the previous quarter.

This is the highest rate of increase this year compared to the 0.1% drop in the first quarter and the 0.4% increase in the second quarter.

It was also higher than the flash estimate of 0.5% released earlier this month.

Meanwhile, resale prices of Housing & Development Board (HDB) flats in Singapore hit a record high.

HDB's Resale Price Index (RPI) rose from 194 in the second quarter of this year to 197.9 in the third quarter.

This represents an increase of 2% over the previous quarter, the same as that of the flash estimate released on 1 October.

Growth for the first three quarters of this year is 3.9%. 

This is lower than the annual RPI growth of 14.1% in 2010, and 10.7% last year.

"With private property prices still rising, it's no surprise that HDB prices will follow suit," said Mr Chris Koh, housing analyst and director of Chris International.

"We saw quite a number of people who wanted to buy a property, aspired to own one, but when they could not afford it anymore, they instead decided to buy in the HDB resale market. They chose particularly larger flats: five-room flats, executive flats, and this could have pushed percentage prices up."

The volume of resale transactions also fell for the first time in 12 months. Resale transactions also fell by about 6% from 7,011 cases in second quarter to 6,560 cases in the third.

The last fall in resale transactions was in the third quarter of last year when transactions fell from 6,581 in the second quarter, to 5,903 in the third.

In the rental market, subletting transactions rose by about 4%.

The number of cases increased from 6,891 in the second quarter to 7,142 cases in the third quarter.
Source: Channel News Asia

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