URA has just released its official second quarter real estate statistics yesterday. It says private home prices have fallen 4.7% this quarter compared to the first quarter 2009. This shows an improvement from its previous flash estimate of- 5.9% earlier in July 2. And this is much improved from last quarter's -14.1%.
Not to loose out to the race and joining in the bandwagon, HDB released their "Release of 2nd Quarter 2009 Public Housing Data" yesterday. The resale price index has risen 1.4%, which is a 0.2% rise from the initial flash estimate of 1.2%. The median cash over valuation or COV fell to S$3,000, a huge decrease from the $22,000 average during the 2007 boom.
Low COVs might explain why HDB flats are still in demand even in this uncertain economic climate, especially in matured estates where demand is much higher than supply. Some analysts say the strength of the HDB resale market is translating into the private home market, as the gap between mass market condos and resale HDBs gets closer (refer to my entry on "Are we where we think we are now"), prompting more of these 'HDB upgraders' to make the crossover into the private property market.
With all these said, do we have clear signs of where this property market is heading? One thing for sure, with the numerous project launches (see my entry on "GSL"), the showrooms will still be packed this weekend, with hungry cash loaded buyers who cashed out their gains in the stock market rally.
Bring your cheque book along!
