HDB prices hit all-time high in 3Q

Find out why this is quite a surprise.

The HDB Resale Price Index (RPI) has inched 2.0% up to a new record high of 197.9, according to HDB’s release of the 3Q12 flash estimates today.

“The HDB resale price index is now at its historical peak as this increase of 2% is the highest in the last 4 quarters (since 3Q11, when the price index grew by 3.8%). This is somewhat unexpected as the increase came with the onset of a greater supply of BTO flats since 2011, and the moderation of HDB resale prices in the first 2 quarters of this year,” commented Mr Mohamed Ismail, CEO of PropNex Realty.

“One of the reasons for the increase in resale price index is that there is an increase in HDB resale activities in the second half of the year, which usually happens in the third quarter. Another reason is the continued strong and latent demand for resale flats, which is complemented by a strong economy, with finances of resale flat buyers remaining robust. With the HDB resale prices increasing by 3.9% for the first 9 months of the year, it is likely to hit between 5 to 6% for the entire 2012”, concluded Mr Ismail.