HDB resale transactions fell 4% in 1Q 2011

Resale transactions fell to 6,228 cases from 6,454 in 4Q10.

According to HDB, their Resale Price Index rose from 172.0 in 4th Quarter 2010 to 174.8 in the 1st Quarter 2011. This is an increase of 1.6%, which is lower than the 2.5% seen in the previous quarter.

The median Cash-Over-Valuation amount among all resale transactions has fallen by another $2,000 (or 9%) from $23,000 in 4th Quarter 2010 to $21,000 in 1st Quarter 2011. The proportion of resale cases transacting above valuation remained at 96%.

Upcoming Sales Launches

HDB has increased its new flat supply significantly to meet the demand from first-timer households. For 2011, HDB will offer 22,000 new Build-to-Order (BTO) flats if demand is sustained.

In the first three months of 2011, HDB launched a total of 4,848 flats for sale. Today, HDB is launching another 3,185 flats located in Hougang, Sembawang, Sengkang and Punggol for sale under the Apr 2011 BTO exercise. In May and Jun 2011, HDB plans to offer another 6,070 BTO flats. This will bring the BTO flats launched by HDB in the 1st half of 2011 to 14,100 units. This is close to 90% of the 16,000 BTO flats offered in the whole of 2010.

In the third quarter of 2011, flat buyers can look forward to another 3,700 flats. These projects will have a good geographical spread in various towns/estates such as Jurong West, Punggol, Sengkang, Tampines and Yishun.

The BTO supply will be supplemented by private developers’ forthcoming housing units under the Design, Build & Sell Scheme and the Executive Condominium Housing Scheme. In 1st Quarter 2011, HDB launched two DBSS sites with a potential yield of about 1,200 flats. The first site at Clementi has been sold while the tender of the second site at Pasir Ris Central will close in May 2011. Another two sites at Sengkang and Bendemeer Road, yielding close to 1,500 flats, will be released for tender in Jun 2011.

In 1st Quarter 2011, HDB has sold two EC sites, yielding a total of 1,100 units, at Choa Chu Kang and Tampines under the Confirmed List. In May 2011, an EC site at Punggol with an estimated yield of 700 units will be offered for tender under the Confirmed List. From the Reserve List, one EC site at Serangoon will be made available for application in Jun 2011.

HDB Rental Market

Median sublet rents in 1st Quarter 2011 have remained relatively stable with increases from 1-room and 5-room flats and decreases from 2-room flats.

Subletting transactions rose by 8% from 5,868 cases in 4th Quarter 2010 to 6,365 cases in 1st Quarter 2011. The total number of HDB flats approved for subletting rose to about 36,400 units in 1st Quarter 2011, compared to about 35,000 units in 4th Quarter 2010.

In May and June 2011, HDB has plans to offer another 6,070 BTO flats. This will bring the BTO flats launched by HDB in the first six months of 2011 to 14,100 units. This is close to 90% of the 16,000 BTO flats offered in the whole of 2010.