HDB resale prices in 1Q12 the lowest in six years

Buyers wary of paying higher cash-over-valuations.

PropNex said that the first quarter flash for 2012 released by HDB today reflects the impact of increase income ceiling, bumper release of 25,000 new BTOs and Sale of Balance flats as well as HDB's commitment to speed up the queue process and chances for first-timers in getting their homes.

“The flash estimate results are as predicted as according to PropNex data, the median Cash-Over-Valuations (COVs) are showing a declining trend to an overall $25,000 since January 2012, a reduction of $7,000 from 4Q2012,”  says PropNex CEO Mr Mohamed Ismail.

Data shows that the HDB Resale Price Index (RPI) at 191.6 saw marginal increase of just 0.6% over the fourth quarter of 2011, marking the lowest growth since 2006.

Ismali said that the HDB resale market prices have reached its peak and is not expected to increase in prices in the next quarters as buyers are becoming reluctant to pay high COVs.

"Overall, the HDB price increment will be muted with no significant growth in the coming months,” he said.