According to official figures released by the Housing Board (HDB) yesterday, resale flat prices rose 4 per cent in the third quarter of this year to hit yet another record.
This is the ninth straight quarter of rising prices. Prices had risen 4.1 per cent in the second quarter compared to the first.
Fewer HDB resale flats change hands but prices rise 4 per cent in third quarter to hit yet another record ~
The median cash-over-valuation (COV), which is the cash premium buyers pay above the flat's valuation, was also unchanged at $30,000. In fact, median COVs for four-room, five-room and executive flats actually rose, to $32,000, $35,000 and $40,000 in the third quarter from $30,000, $33,000 and $36,300 in the previous quarter respectively.
COVs are one measure of how hot the demand is for resale HDB flats.
Yesterday's data therefore shows that the new measures introduced on Aug 30 to tighten home financing and restrict ownership of public housing are not yet officially translating to lower resale flat prices.
The measures have, however, curbed flat sales. Resale HDB transactions fell by 10 per cent to 8,205 deals in the third quarter from 9,114 in the second quarter, largely due to a 25 per cent dip in deals last month compared to August.
Commenting on the numbers, the HDB said the full impact of the cooling measures will be captured only in the fourth quarter data as the majority of the deals done in the third quarter were submitted to HDB before the new rules.
Some property analysts had other explanations for the lag in effect. They said that prices are not falling yet because many sellers have simply taken their flats off the market in response to souring sentiment, instead of accepting lower prices.
Turning to the supply of new flats, HDB said yesterday it will be launching 1,320 flats under its build-to-order scheme in Bukit Panjang and Sengkang on Tuesday.
A further 2,200 new flats will be launched in Yishun and Punggol next month and in December.