Prices of HDB resale flats reach a record high

That is on the back of a 19% increase in transaction volume in 2Q12.

Prices of HDB resale flats reached a record high in 2Q 2012 on the back of 19 per cent q-o-q increase in transaction volume. HDB resale transactions rose from 5,900 in 1Q 2012 to 7,000 in 2Q 2012, pushing resale price index up by 1.3 per cent, to 194.0.

Resale prices and transaction volume continued to rise despite an increased supply of 12,700 Build To Order (BTO) flats and another 3,800 Sale of Balance Flats released in 1H 2012. The sustained resale transaction volume reflects strong pent up demand for resale HDB flats from groups that do not qualified for BTO or require immediate occupation.

In addition, supply of resale flats remains tight until these new BTO flats are completed and eventually available in the secondary market after the 5-year Minimum Occupation Period.