2014 likely quiet for HDB resale market

The HDB resale market is expected to slow down next year on the back of the government’s measures on permanent residents (PRs), according to analysts quoted in a media report.

Newly-minted PRs now have to wait three years before they can purchase a resale flat. There was no such requirement previous to when this regulation came into effect on 27 August.

The housing board revealed that PR households purchased an average of 323 units per month during the first eight months of the year. However, this fell to an average of 176 units per month since the introduction of the new ruling.

“Based on these preliminary figures from the HDB, the drop in demand from PRs will reduce the (overall) demand for resale flats by about 10 percent in 2014,” said Nicholas Mak, Research Head at SLP International Property Consultants.

Moreover, first-time buyers can easily purchase new flats currently, while the government is expected to raise the quota of new flats for second-timers.

This means that fewer buyers are expected to turn to the resale market.

While next year’s figure will likely be similar to 2013 – which saw “one of the lowest in years” with estimates at around 17,200 to 18,500 compared to more than 24,000 to 37,000 in annual resale volumes over the last five years – activity is expected to pick up in the second half of the year as buyers get drawn back to the market by lower prices.

The real estate agency is also “quietly optimistic that resale HDB volumes will pick up in 2014” as HDB slows down the launch of Build-to-Order (BTO) flats.

As such, resale volumes will likely be “a shade better than this year” at over 20,000 but less than the 25,000 or so recorded in 2011 and 2012.

Source: Dec 26, 2013 - PropertyGuru.com.sg

Refining the Executive Condominium Housing Scheme

The Government will implement three measures for Executive Condominium (EC) developments to bring the terms for ECs closer to that for public housing, and help support a stable and sustainable EC market. This follows a review by MND on the EC Housing Scheme, taking into account feedback from the Our Singapore Conversation on Housing. 

I. Reduce EC Cancellation Fees 
2   First, we will reduce the cancellation fees for ECs from 20% to 5% of the purchase price. This will relieve the financial burden of buyers who have to cancel their EC bookings after signing the Sale & Purchase Agreement. The new cancellation fee will be applied to EC land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed. 

3   The cancellation fee for ECs is currently set at 20% of the purchase price, similar to those for private housing. However, unlike buyers of private housing, buyers of EC units cannot sub-sell their units if they cannot complete their purchase, and have to pay the cancellation fee. This has especially imposed significant financial burden on young couples who subsequently are not able to proceed with their marriage and hence the EC purchase. 

4   We will therefore align the cancellation fees for EC units with that for HDB Build-to-Order (BTO) flats, and reduce them from 20% to 5% of the purchase price. 

II. Resale Levy for Second-Timer Applicants 
5   Second, we will now require second-timer applicants who buy EC units directly from property developers to pay a resale levy, similar to second-timer applicants who buy BTO flats. The new requirement will be applied to EC land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed. 

6   Currently, second-timer applicants who buy EC units directly from property developers benefit from the lower EC prices arising from the initial eligibility and ownership restrictions imposed on EC purchases. However, they do not need to pay a resale levy. The alignment of treatment with second-timer applicants who buy BTO flats will ensure greater parity. 

III. Revision of Mortgage Loan Terms 
7   Third, the Monetary Authority of Singapore (MAS) will cap the Mortgage Servicing Ratio (MSR) for housing loans granted by financial institutions for EC units bought directly from property developers at 30% of a borrower’s gross monthly income. This is in line with earlier measures introduced by the HDB and MAS to encourage financial prudence among buyers of public housing. It discourages EC buyers from over-stretching their finances and supports an affordable and sustainable EC market. 

8   The 30% MSR cap will apply to EC purchases where the Option to Purchase is granted on or after 10 Dec 2013.1
Enquiries 
9   For further enquiries on any of the above measures, the public can contact the HDB Sales Customer Service Line: 1800-866-3066. 

Issued by: Ministry of National Development
Date 9 Dec 2013 

Source: MND

COV for resale flats fall below S$10,000 in Nov 2013

Cash premiums for resale flats fell below S$10,000 in November for the first time since July 2009. According to flash estimates compiled by the Singapore Real Estate Exchange (SRX), the cash-over-valuation (COV) for HDB resale flats reached S$8,000 in November.SINGAPORE: Cash premiums for resale flats fell below S$10,000 in November for the first time since July 2009.

According to flash estimates compiled by the Singapore Real Estate Exchange (SRX), the cash-over-valuation (COV) for HDB resale flats reached S$8,000 in November.

Alan Cheong, research head at Savills Singapore, said: “The fall in COVs, though expected, is disconcerting. Because right now, the COV, on average, is below S$10,000. If it goes on this way, it will go into negative territory very soon.

“A falling COV like this, if wrongly interpreted in the hands of unsophisticated sellers, may trigger a panic selling situation."

Meanwhile, 13.1 per cent of HDB resale deals closed below valuation in November, up from October's 8.5 per cent. Sengkang, Choa Chu Kang, Jurong West, Woodlands and Hougang saw the most numbers of negative COV deals last month. 

Overall HDB resale prices dropped 0.6 per cent in November, reaching the lowest level since September 2012.

SRX said 1,051 HDB flats were re-sold in November, down 11.5 per cent from October (1,187). Compared to a year ago, resale volumes fell 34 per cent.

Thomas Tan, executive director of RE/MAX, said: “It would be a trend going into early 2014. Traditionally, yes, this is the lull period right up to Chinese New Year.

“We can also see that the government has released lots of supply in terms of new flats in the BTO (Build-To-Order) launches and recent measures of limiting the mortgage servicing ratio to 30 per cent, that would affect affordability for many resale flat buyers.”

Over in the private condominium market, momentum also slowed, with resale volumes falling 34 per cent in November. 

Resale prices of private homes declined 1.5 per cent in November, marking the third consecutive monthly drop in the overall resale price index.

SRX said this is also the lowest price level observed in this year, down 4.1 per cent from the peak in February.

Prices fell across the board for resale transactions across the island, with private homes in the city area contracting by 2.0 per cent.

Prices of resale homes in the suburban areas dipped 0.9 per cent, while those in the city fringe declined 0.7 per cent.

About 387 non-landed homes were resold in November, down 22.9 per cent from October. On a year-on-year basis, this represented a 62 per cent drop from the 1,019 units transacted in November 2012. 

Meanwhile, rentals of private condominiums remained flat after three months of decline, and median rentals of HDB flats dipped by S$50 to S$2,350, the first dip since June 2012.

Some market watchers expect the rental market to maintain rentals at existing rates at best, with landlords more keen to retain current tenants or sign new leases at slightly lower rents. 

- CNA/ac/ms

Source: ChannelNewsAsia 5 Dec 2013

More flats sold below valuation

As stricter home loan rules weaken demand, the volume of HDB flats being sold below their appraisal value has also increased, media reports said.

In October, 105 flats were sold below valuation, or seven percent of the total volume, based on data from the housing board. This is significantly down from the average 0.3 percent for every month of the first half of the year.

This also implies that the number of flats sold below valuation increased fourfold in October alone compared to the entire period of January to June, when an average of five such transactions were recorded each month.

As such, sellers have been forced to adjust their expectations.

For instance, Assistant Manager Raymond Koh asked for cash-over-valuation (COV) of S$20,000 for his second floor five-room flat in Punggol earlier this year. When he found no buyers, Koh lowered his COV to “S$10,000, then S$5,000, then zero”, he said. After which, “I started going negative”.

Currently his nine-year-old flat is priced S$20,000 below valuation. “Any lower and I might as well continue living here,” said Koh, who wants to upgrade to an executive apartment or condominium in Sengkang, close to his preferred school for his five-year-old son.

Meanwhile, National Development Minister Khaw Boon Wan revealed that the government will begin tapering off its “massive construction programme from 2014”.

“We will do so in a measured way, to allow the market to gradually adjust, just like what we had done to cool the property market earlier,” he said in his blog on Monday.

He noted that three years of increased supply helped to restore balance in the housing market, as indicated by the lower COV trend in the HDB resale market and the decline in average Build-to-Order (BTO) application rates – from 5.3 in 2010 to 2.9 this year.

The November BTO and balance flats exercise saw the release of 8,952 flats in a single launch, making it the largest in HDB’s history.

“With this, we have delivered over 25,000 BTO flats this year and over 77,000 BTO flats in the last three years,” said Mr Khaw.

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg

Source: Dec 5, 2013 - PropertyGuru.com.sg

Lower property taxes for 95% owner-occupied homes in 2014

SINGAPORE - Most owner-occupied homes will have to pay less in property tax next year, the Inland Revenue Authority of Singapore (IRAS) said on Tuesday.

Under the new Progressive Property Tax Rates regime announced during Budget 2013, all owner-occupied HDB flats and three quarters of owner-occupied private homes - or 95 per cent of owner-occupied homes - will see lower property tax bills.

Taking into account non-owner-occupied homes as well, 80 per cent of all homes will pay lower property tax in 2014.

With the new property tax structure, the Annual Value (AV) exemption threshold for which no tax applies will be $8,000, up from $6,000 previously. Owners who live in their own homes will not have to pay property tax on the first $8,000 of the Annual Value (AV) of their properties from Jan 1, 2014.

The new property tax structure also increases the progressivity of the property tax structure by taxing properties with higher AVs more.

A property's AV, which Iras reviews annually, is based on the estimated annual market rent of the property if it was to be let out. This is then used as a basis to compute the property tax payable.

The AV of three to five-room HDB flats will be revised next year, as market rents for these flats have increased by about 3 per cent since the last revision in January this year.

There will be no change to the AV of the other types of flats as rents on these flats have remained largely the same.

This means that all one and two-room HDB owner-occupiers will continue to pay no property tax.

Other HDB owner-occupiers will enjoy property tax savings ranging from $28 to $40 in 2014, IRAS added.

In total, 80 per cent of all homes will face lower property tax in 2014.

The property tax payable for HDB owner-occupied flats in 2014 are as follows:

AV and Property Tax for Owner-Occupied Private Residential Property

The market rents of 70 per cent of private residential properties over the past year have remained largely the same since the last AV revision. Only 30 per cent saw an increase in AV. Under the new property tax structure, 74 per cent of private owner-occupiers will pay less tax in 2014.

Property tax rates for non-owner-occupied residential properties with AVs above $30,000 will be increased gradually from January 1.

With this change, 74 per cent of non-owner-occupied private residential properties and HDB flats will have higher property taxes after applying the new tax rates on their 2014 AVs.

Property owners will receive their property tax notices and bills by the end of this year, and are reminded to pay their property tax by January 31.

ljessica@sph.com.sg

Tuesday, Nov 26, 2013

Source: AsiaOne

Can you use your CPF to repay housing loans after 55?

Whether your CPF can be used to repay housing loans after 55, depends on how much CPF savings you have at 55, and how much you have already used for housing. 

When you turn 55, a Retirement Account (RA) is created using savings from first your Special Account, then Ordinary Account (OA) to meet the Minimum Sum (MS) relevant to your cohort. While the MS provides monthly payouts from your draw down age, the balance in your OA can be used for housing loan repayments. 

Members who are able to set aside more than half of the MS, will be able to use the amount in excess of half of the MS for housing loan repayments. 

For example: 

If you continue working after 55, your CPF OA contributions can also be used for housing loan repayments. 

However, housing withdrawal limits may apply. This is to safeguard members from overspending on their housing loan repayments at the expense of their retirement savings.

Source: CPF

MINIMUM SUM SCHEME 2013

How much is the Minimum Sum (MS)?

The MS was set at $80,000 in 2003 and is being raised gradually until it reaches $120,000 (in 2003 dollars) in 2015. The MS will be adjusted yearly for inflation.

55th birthday on or after	MS (in 2003 dollars)	MS (after adjustment for inflation)
1 July 2003	$80,000	$80,000
1 July 2004	$84,000	$84,500
1 July 2005	$88,000	$90,000
1 July 2006	$92,000	$94,600
1 July 2007	$96,000	$99,600
1 July 2008	$100,000	$106,000
1 July 2009	$104,000	$117,000
1 July 2010	$108,000	$123,000
1 July 2011	$112,000	$131,000
1 July 2012	$113,000	$139,000
1 July 2013	$115,000	$148,000
1 July 2014	To be announced	} To be
1 July 2015	$120,000	} announced

Why do I need to set aside MS?

Setting aside the MS when you reach 55 years old ensures that you have a regular income from your drawdown age (DDA) to support a basic standard of living.

Year of Birth	Drawdown age
1943 and before	60
1944 to 1949	62
1950 and 1951	63
1952 and 1953	64
1954 and after	65

How is MS set aside?

When you reach 55 years old, your Special Account (SA) savings, followed by your Ordinary Account (OA) savings will be transferred to your Retirement Account (RA) to meet your MS.

If the savings in your SA and OA are not enough to make up the MS, your property which was purchased using CPF savings will be automatically pledged, for up to half of your MS, to make up the difference. The pledge amount will be the amount of CPF used for the property or the Minimum Sum shortfall, whichever is lower.

If you sell the property, you will need to refund the CPF that was used to buy it and the accrued interest. The amount refunded will be used to top up to the MS that applies to you, and the current Medisave Required Amount (MRA) of $38,500. The balance of the housing refunds will then be paid to you automatically. Also, if you had withdrawn your RA savings by pledging your property, you need to refund the amount withdrawn from your RA upon the property sale to redeem the pledge.

If there is still a MS shortfall in your RA after pledging your property, a portion of the new inflows like working contributions, voluntary contributions, government top-ups and other refunds received after 55 years old will be used to make up the shortfall upon your subsequent CPF withdrawals.

After setting aside your MS and current MRA, you can choose to withdraw the remaining cash balances in your OA and SA, or continue to keep your savings in CPF to earn interest.

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For full info: CPF Minimum Sum

Source: CPF

Resale Checklist for Buyers Effect From 1st Dec 2013

The Resale Checklist highlights the important policies and procedures that you should take note of before buying a resale flat. The checklist must be completed before you exercise the Option to Purchase. 

• Guide to Submit the Resale Checklist via the Resale Checklist for Sellers/Buyers (e-Service) New!
• Guide to Submit the Hardcopy Resale Checklist together with the Resale Application To be discontinued on 1 Dec 2013

Guide to Submit the Resale Checklist via the Resale Checklist for Sellers/Buyers e-Service

What’s New? The Resale Checklist has gone ‘e’! From 24 October 2013, you can complete and submit the checklist online via the Resale Checklist for Sellers/Buyers (e-Service). From 1 December 2013, the HDB will only accept Resale Checklists submitted via this e-Service.

For buyers who have not engaged the services of a salesperson

Step 1		You (one of the buyers) may log on to Resale Checklist for Sellers/Buyers (e-Service) using your SingPass and click on the ‘Submit New Checklist’ button.
Step 2		You and all the co-applicants (if any) must go through the items in the Resale Checklist. You will need to provide the particulars of all the buyers and your email address.
Step 3		Upon completing the checklist and reviewing the information click the ‘Submit’ button to submit the checklist to the HDB. An acknowledgement page with a checklist serial number will be generated upon successful submission of the checklist. The acknowledgment page will also be sent to all buyers by e-mail.

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For buyers who have engaged the services of a salesperson

Step 1	If you have engaged the services of a salesperson, your salesperson is required to go through and complete the checklist with you. The salesperson will first click on the ‘Submit New Checklist’ button on the Resale Checklist for Sellers/Buyers (e-Service) and log in with his/her SingPass.
Step 2	The salesperson will need to provide his particulars and the particulars of all the buyers, including name, NRIC number and email address. The salesperson is required to go through all the items in the checklist with all the buyers.
Step 3	Upon completing the checklist and reviewing the information click the ‘Submit’ button to forward the checklist to one of the buyers for endorsement. The checklist has to be endorsed by the buyer by the next day from the date the salesperson completes the checklist.
Step 4	The buyer who is endorsing the checklist (you) will click on the ‘Retrieve Completed Checklist’ button on the Resale Checklist for Sellers/Buyers (e-Service) and log in with your SingPass. You are required to provide the serial number of the checklist that the salesperson had completed. You will need to review the information provided and confirm that the salesperson has gone through the checklist with you and all co-applicants(if any). You will need to click the ‘Submit’ button to submit the checklist to the HDB. An acknowledgement page with the same checklist serial number will be generated upon successful submission of the checklist. The acknowledgment page will also be sent to you by e-mail.

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Important Notes:

• Buyers can only exercise the Option to Purchase after completing the checklist.
• The checklist serial number is required when submitting the resale application.
• If you are not able to submit your resale application within 6 months after the date the checklist is completed, you will need to resubmit a new checklist. This is to ensure that buyers are aware of the latest policies on buying an HDB flat.
• All buyers and their salesperson, if any, are required to sign on the completed checklist during the resale First Appointment. The completed checklist will be printed by the HDB for your signing.

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For full info: Resale Checklist
Source: HDB

HDB Resale Price Index 3Q 2013

The HDB Resale Price Index tracks the overall price movement of the public residential market. The index is calculated using resale transactions registered across various towns, flat types and models, with the fourth quarter of 1998 as the base period (i.e. index has a value of 100 in 4Q98). 

The Index is used by comparing how it changes from one period to another. For example, if the index increases from 100 to 108 in one year, it means that on the whole, HDB resale flat prices increased by about 8% over this period. 

PRICE INDEX OF HDB RESALE FLATS

Source: HDB

RENTAL INDICES OF NON-LANDED PROPERTIES BY LOCALITY IN SINGAPORE 3Q 2013

Quarter	CCR*	RCR^	OCR
3Q/2009	133.3	131.4	118.3
4Q/2009	134.5	131.5	118.3
1Q/2010	141.6	136.8	124.0
2Q/2010	150.6	143.8	131.6
3Q/2010	156.0	149.1	136.3
4Q/2010	159.5	154.7	140.8
1Q/2011	161.4	155.3	143.0
2Q/2011	162.8	156.7	145.1
3Q/2011	163.5	158.2	146.6
4Q/2011	163.6	160.1	147.4
1Q/2012	164.4	160.7	147.7
2Q/2012	164.2	161.8	149.2
3Q/2012	165.1	163.4	151.6
4Q/2012	166.2	164.4	153.4
1Q/2013	167.6	164.5	154.6
2Q/2013	168.4	164.7	154.6
3Q/2013	169.0	165.7	153.4

* Core Central Region comprises Postal Districts 9, 10, 11, Downtown Core Planning Area and
Sentosa. A map of Central Region showing the Core Central Region (CCR) and the Rest of Central
Region (RCR) is available at: http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf
^ Rest of Central Region comprises the area within Central Region that is outside postal districts 9,
10, 11, Downtown Core Planning Area and Sentosa. A map of Central Region showing the Core
Central Region (CCR) and the Rest of Central Region (RCR) is available at:
http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf

RENTAL INDICES OF NON-LANDED PROPERTIES BY LOCALITY 

Source: URA (As on 25th Oct 2013)

NUMBER OF RESALE TRANSACTIONS FOR PRIVATE RESIDENTIAL UNITS BY MARKET SEGMENT IN SINGAPORE 3Q 2013

Core Central Region *			Rest of Central Region **			Outside Central Region			Whole Singapore
Period	Resale ^		Period	Resale ^		Period	Resale ^		Period	Resale ^
2Q/2010	962		2Q/2010	1537		2Q/2010	2754		2Q/2010	5253
3Q/2010	825		3Q/2010	1382		3Q/2010	2512		3Q/2010	4719
4Q/2010	806		4Q/2010	1265		4Q/2010	2166		4Q/2010	4237
1Q/2011	604		1Q/2011	1016		1Q/2011	1887		1Q/2011	3507
2Q/2011	831		2Q/2011	1307		2Q/2011	2393		2Q/2011	4531
3Q/2011	606		3Q/2011	965		3Q/2011	1736		3Q/2011	3307
4Q/2011	486		4Q/2011	802		4Q/2011	1413		4Q/2011	2701
1Q/2012	376		1Q/2012	692		1Q/2012	1142		1Q/2012	2210
2Q/2012	750		2Q/2012	1126		2Q/2012	1958		2Q/2012	3834
3Q/2012	757		3Q/2012	1130		3Q/2012	1824		3Q/2012	3711
4Q/2012	808		4Q/2012	1002		4Q/2012	1649		4Q/2012	3459
1Q/2013	407		1Q/2013	622		1Q/2013	974		1Q/2013	2003
2Q/2013	441		2Q/2013	610		2Q/2013	1024		2Q/2013	2075
3Q/2013	315		3Q/2013	386		3Q/2013	639		3Q/2013	1340

* Core Central Region comprises Postal Districts 9, 10, 11, Downtown Core Planning Area and Sentosa. A map of Central Region

showing the Core Central Region (CCR) and the Rest of Central Region (RCR) is available at:

http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf

** Rest of Central Region comprises the area within Central Region that is outside postal districts 9, 10, 11, Downtown Core Planning

Area and Sentosa. A map of Central Region showing the Core Central Region (CCR) and the Rest of Central Region (RCR) is available at:

http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf

^ Data on the number of Sub-sale and Resale units, excluding en-bloc sale units, are collated from caveats lodged at the Singapore

Land Authority. As the lodging of caveats is voluntary and they do not have to be lodged by a certain date, the statistics published here

cover only caveats lodged by the cut-off date. The statistics will be updated in the next quarter when more caveats are received.

NUMBER OF RESALE TRANSACTIONS FOR PRIVATE RESIDENTIAL UNITS BY MARKET SEGMENT 

Source: URA (As on 25th Oct 2013)

Sengkang Median COV & Resale Prices for Resale Cases Registered in the 3rd Quarter 2013

Sengkang Median Cash-Over-Valuation (COV) for Resale Cases Registered in the 3rd Quarter 2013

4-Room: S$15,000
5-Room: S$18,000
Executive: S$20,000

COV Link

Sengkang Median Resale Prices by Town and Flat Type for Resale Cases Registered in 3rd Quarter 2013

4-Room: S$486,500
5-Room: S$532,000
Executive: S$620,000

Resale Prices Link:

Soure: HDB

Singapore's private home resale prices continue to soften in October

SINGAPORE - Private home resale prices slipped 0.1 per cent in October from the preceding month, mainly due to a price decline in the suburban region, flash estimates from the Singapore Real Estate Exchange (SRX) showed on Friday.

Here is the full report from SRX:

Resale prices of non-landed private residential units softened by 0.1 per cent in October 2013.

The overall price drop was led by Outside Central Region's (OCR) 1.4 per cent drop, followed by Core Central Region's (CCR) prices slipping 0.5 per cent. On the flip side, Rest of Central Region (RCR) saw price gain of 0.4 per cent.

An estimated 486 non-landed homes were resold in October, a 13.5 per cent improvement from September's 428 units sold. HOWEVER, on a year-on-year basis, this represents a more than 50 per cent drop from the 1,435 units transacted in October 2012;

Non-landed Private Residential Rental:

Based on the non-landed residential rental SPI sub-index, overall rental prices for non-landed private residential in October dropped by 1.5 per cent from September, representing the lowest rental price level since June 2012. 

This represents a drop of 4.2 per cent since the rental price peak in January of this year;

On a regional basis, rental prices in the CCR and OCR softened by 1.3 per cent and 1.9 per cent respectively, while RCR's rents remained flat;

HDB Resale and Rental:

Overall HDB Cash-Over-Valuation (COV) dropped another $3,000 in October to reach $12,000 - the lowest since July 2009, when the overall COV was $10,000;

Overall HDB resale prices slipped 1.6 per cent in October, following a slight gain of 0.2 per cent in the preceding month. This represents a 2.8 per cent drop from the price peak in January of this year;

According to flash estimates, 1,318 HDB flats were sold in October's resale market, a 26.5 per cent rebound from September's 1,042 resale cases. HOWEVER, on a year-on-year basis, October resales volumes represented a 20 per cent drop from the same period in 2012.

An estimated 1,506 HDB flats were rented in October 2013, up by 7.7 per cent compared to September.

Friday, Nov 08, 2013

Melissa Tan

The Straits Times

Source: AsiaOne

Sengkang Hospital - Work has begun on new general hospital in the north; 1 of 4 to be built by 2030

The hospital complex at Sengkang will comprise an 800-bed general hospital, a 400-bed community hospital, and another 200 "swing beds" which could be used by either hospital.

Sunday, October 27, 2013 - 19:31

Salma Khalik

The Straits Times

Source: AsiaOne

URA releases flash 3rd Quarter 2013 private residential property price index

The Urban Redevelopment Authority (URA) released the flash estimate of the price index for private residential property for 3rd Quarter 2013 today.

Overall, the private residential property index rose 0.8 points from 215.4 points in 2nd Quarter 2013 to 216.2 points in 3rd Quarter 2013. This represents a moderate increase of 0.4%, compared to the 1.0% increase in the previous quarter (see Annex A).

Prices of non-landed private residential properties in both Core Central Region and Rest of Central Region declined in 3rd Quarter 2013. In Core Central Region, prices fell 0.5%, more than the 0.2% decline in the previous quarter. Prices in Rest of Central Region decreased for the first time since 1st Quarter 2012, by 1.1%, compared with the 0.2% increase in the previous quarter. In Outside Central Region, prices increased by 2.1% in 3rd Quarter 2013, which is lower than the 3.8% increase in the previous quarter (see Annex B).

The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter supplemented by survey data on new units sold by developers in the first two months of the quarter. The statistics will be updated 4 weeks later when URA releases the full real estate statistics for 3rd Quarter 2013, which captures more data on the caveats lodged and the take-up of new projects. Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. The public is advised to interpret the flash estimates with caution.