Singapore, you are fabulous with these new high property prices (again)!
Half-empty, most will probably struggle to pay off these huge loans for a long time to come. Half-full, we are now more or less a global metropolis competing with all the top dogs - Singapore (or rather her real estate prices) has certainly come a long way and truth be told we are really proud of what we have achieved.
Anyway, as splashed all over the headlines during the weekend:
Private prices has continued to go up, but at a more measured pace. Only 5.3 percent in this quarter! This has pushed the residential property price index to an all-time high as seen below:
HDB meanwhile, has also continued to move upwards by 4.1% in the 2nd Quarter 2010. Although resale transactions dipped 11% year on year (2nd Q 2009). The most eye-popping news however was that median Cash-Over-Valuation has made a vicious come back and increased to $30,000 (how is it that this figure is so round and perfect?). 96% of all resale flats sold with COV.
In timely fashion, HDB has also announced that it is increasing new flat supply again to meet demand from first-timer households and setting itself up for an epic oversupply and crash in 2014 to divert demand from the HDB resale market. Up to another 7,200 BTO flats will be launched in the second half of 2010 in Woodlands, Yishun, Punggol and Sengkang. In total about 16,000 brand new flats will be created in 2010 alone (that would house 16,000 families!).
Of course more Design Build and Sell Scheme (DBSS) and Executive Condominium (EC) flats will supplement the increased supply.
Hmm...are these sky high prices here to stay?
As posted in h88.com.sg by Francis