Prices of resale HDB flats have shot up 38% over the past three-and-a-half years according to Eugene Lim, associate director, ERA Asia-Pacific. But what’s shocking is that 40% of buyers are made up of Permanent Residents according to recent ERA’s resale transactions.
“The government’s target population of 6.5 million is steadily increasing the pool of PRs; and they have to buy their HDB homes from the resale market as they do not qualify to buy new flats directly from HDB. ERA’s resale transactions show that PR buyers make up some 40 per cent compared to 20 per cent three years ago.” – Eugene Lim, assosiate director, ERA Asia-Pacific.
It is widely known that prices have risen over the past few years and that we had a large influx of new residents. But when you see these such statistics side by side, it begs to question why weren’t countermeasures put into place earlier considering this happened over a sustained period of three-and-a-half years?
Another statistic we found interesting in the report was how 86% of ERA’s HDB recent resale transactions were concluded with Cash-Over-Valuation (COV). This number seems to come into conflict with what Mr Mah Bow Tan said recently about a third of HDB resale transactions done at or below valuation.
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The report by Eugene Lim, associate director, ERA Asia-Pacific can be found here via The Business Times.