HDB resale price falls 9.3% but BTO price rises 6.7%? Hello?

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An honorable member of the Coffee Shop Has Just Posted the Following:

In a blogpost yesterday (29 Dec), National Development Minister Khaw Boon Wan said that 2014 marks the turn of the housing market in Singapore.

“Prices have been moderating and the market shifting from a seller’s to a buyer’s market. The shift is not yet complete and 2015 should see greater stability,” he said.

“We are scaling down the pace of construction but remain proactive on refining our policies to meet diverse housing needs of flat buyers and home owners.”

Mr Khaw said, however, that next year, HDB will be launching a lower number of new flats, at 16,900 flats. This year, HDB has built some 28,000 new flats.

He said that he expects 2015 to also be “spectacular for Singaporeans and HDB residents”.

When asked by the media if he expects a double-digit fall in property prices next year, he said he hoped that would not be the case. Single-digit changes are easier for people to accept, he added.

Experts said HDB resale prices have already fallen by 8% for the whole of this year.

According to HDB resale price index – prices actually fell by 9.3% from 2013 second quarter to 2014 third quarter.

However, the latest BTO launch in November [Link] was found to be selling Sembawang Sun Breeze 4-room flats from $240,000 and in the May 2013 BTO launch (Sembawang Eastbank, Eastbrook and Eastwave@Canberra) were selling 4-room flats from $225,000.

This is an increase in the lowest priced 4-room flat by 6.7%.

And yet, during this period, the HDB resale price index fell by 9.3%.

The reader who highlighted this peculiar phenomenon told TRE, “Shouldn’t new BTO prices also fall by 9.3%, instead of increase by 6.7%?”

“How do we explain the 16 per cent price differential?” he asked.

What do you think is going on?

http://www.tremeritus.com/2014/12/30...ice-rises-6-7/


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