Property price increase in Q2: HDB, private sectors

HDB flat prices in the second quarter of 2011 rose by 2.9 per cent to a record, according to initial estimates by the Housing Board.

The increase is the fastest since the third quarter of 2010. Resale flat prices in the first quarter had risen by 1.6 per cent from the fourth quarter of 2010.

Prices of private homes, on the other hand, increased at a slower pace in the second quarter. The Urban Redevelopment Authority's residential price index climbed by 1.9 per cent during the quarter - which are mostly based on transaction prices given in caveats lodged during the first 10 weeks of the quarter.

This is slower than the 2.2 per cent growth in the first quarter. It is also the seventh consecutive quarter in which the rate of increase has fallen since the fourth quarter of 2009.

Prices of non-landed private homes rose by 1.6 per cent each in the core central region and outside central region. In the rest of central region, prices were up just 1.2 per cent.

The HDB plans to launch 2,000 flats under a sale of balance flats exercise in August. Some of these flats will be in the mature estates. The board is also on track to offer 22,000 build-to-order (BTO) flats by September and another 3,000 BTO flats in the last quarter.