HDBs release of flats to help first-timers

With HDB’s resale price index flash estimate for 2009’s third quarter hitting another record high of 144.7, indicating an increasingly high demand for resale flats, its announcement today that it will release 2,132 flats under the SBF (Sale of Balance Flats) exercise is welcome news indeed.

“The grouses of many first-timers will be soothed,” says PropNex CEO Mohamed Ismail, “as the introduction of these flats should, at least temporarily, ease the demand of resale flats.”

Mr Ismail expects COV levels to dip slightly due to the immediate addition of 2,132 flats to the market, and feels that this will actually encourage sustainable long-term growth of the HDB resale price index.

“With this influx of flats,” he adds, “first-timers should have an easier time finding a home for themselves.”

Mr Ismail also observes that the central locations of Bukit Merah and Kallang/Whampoa, which are offering 587 and 360 flats respectively, account for 947 flats, or 45% of the total up for sale. And the prices of these flats are generally cheaper than other flats in the same estate. A 4-room Bukit Merah flat under the SBF exercise costs $388,000, while the median resale price for 4-room flats for 2Q09 in Bukit Merah was $454,000.

Given that these flats are on sale at more affordable prices, Mr Ismail expects these matured estates to be oversubscribed by at least 10 times.

“It is seldom that one can find new flats in matured estates,” says Mr Ismail, “so for these flats to be offered at xx% lower than other similar resale units in the estate, successful applicants can consider themselves to have made a very good investment.

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For enquiries, please contact:
Mohamed Ismail (CEO)     9487 1414
Adam Tan (Corporate Communications Manager) 9006 8726