The Property Boom is Back

Hard to believe, but it's true. The facts speak for themselves. Latest news on the HDB market:

ST July 24, 2009
HDB prices hit record high
By Jessica Cheam

PRICES of Housing Board flats have reached a historical record, rising 1.4 per cent in the second quarter this year, reversing a first-quarter dip of 0.8 per cent.

Fresh data released from the HDB on Friday shows the resale price index rising to 140.2 - beating the previous record set in the fourth quarter of last year when it hit just over 139.

The figures have come in slightly higher than flash estimates released earlier this month which showed that prices rose 1.2 per cent.

Sales of HDB resale flats also surged 58 per cent, reflecting improved market sentiment, to reach 10,184 transactions in the second quarter, compared to 6,446 in the first quarter.

And here's a snapshot of the private property market:

July 24, 2009
Buyers snap up home deals
Lower prices, pent-up demand driving surge in sales of private homes
By Melissa Tan & Smita Krishnaswamy

THE current recession-defying surge in home sales is being driven by pent-up demand from local buyers with enough savings to swoop on lower-priced units and a determination to invest or upgrade.

These buyers are not acting on impulse but have been saving up for years.

Another key factor is the fear of missing the boat ahead of another property boom, The Straits Times has found after speaking to buyers and market analysts.

Last month, an all-time record of 1,825 private homes were sold, continuing a major upswing that started in February. The June figure exceeded that of August 2007 - the height of the last property boom.

On recent weekends, showflats have been crammed with families, couples and singles. Some want to buy a condo as an investment with prices still quite low; others wish to upgrade from HDB flats.

And just six months ago, practically all the real estate analysts were saying that 2009 would be a disaster for the property market. In fact, June was cited as the time when things would go really, really sour, just because of the number of projects that would TOP around then.

One of those situations where truth turns out to be stranger than fiction.