A REALITY check hit the property market yesterday, when the Government released figures that get behind the hype to show buyers how prices are really moving.
This is a response to the sometimes mind-boggling prices reported for both private homes and some Housing Board (HDB) flats recently - prices that could give a distorted picture of the market.
A clearer picture emerged yesterday with figures - released for the first time - giving a range of sale prices in new condo projects last month and similar data for HDB flats for April till last month.
They show that most private property is selling for far less than the record price hype might have buyers believe - with plenty in stock.
The data - easily accessed online - means a buyer who sees sky-high prices in a condominium, for example, can also learn about other transactions in the same project to get a better idea of what he might have to pay.
This also goes for buyers looking at HDB units.
Take the posh Marq on Paterson Hill. A unit there sold recently for a record $5,100 per sq ft, yet Urban Redevelopment Authority (URA) figures show that $4,044 per sq ft was the median price. Median means half the units sold above that level, half below.
There was a similar ‘gap’ at Duchess Residences in Bukit Timah. The ‘headline’ price for one flat was $2,875 per sq ft, while the median price was $1,745.
The move yesterday follows concerns voiced by National Development Minister Mah Bow Tan in May that reports of record prices ‘may not paint the full picture’.
Mr Mah said then that more detailed price information would ‘further improve the transparency and efficiency of the market’.
House-hunter Tang Kwok Chin, 55, was delighted with the outcome: ‘Now I can more accurately gauge prices and check the actual number of units sold in each development. It will help me to be a more cautious buyer.’
Figures for private homes - gleaned from developers - show the median, lowest and highest prices of units sold in uncompleted private residential projects in June. The data will be updated every month at www.ura.gov.sg
The URA also launched an online guide that takes first-time buyers through the process of buying property.
HDB buyers can find similar price information at www.hdb.gov.sg
It lists average resale prices and average cash- over-valuation (COV) figures for HDB sales in the April to June period. COV is the cash difference of the transacted resale price and market valuation.
A stark example is the Bukit Merah flat at Kim Tian Place that sold for $720,000 last month - setting a record for five-roomers and raising the expectations of HDB owners everywhere - which had a COV of $350,000.
But the bigger picture revealed in HDB data shows that five-room flats in the central area, including Bukit Merah, Bishan and Toa Payoh, sold for about $439,200, with a COV of $33,600.
Property experts welcomed the move for more transparency.
Colliers International director (research and consultancy) Tay Huey Ying said: ‘Hopefully, the public will not be misled by extreme information and can make more calculated decisions.’
Knight Frank director of research Nicholas Mak said: ‘It gives the man on the street a more complete picture. Buyers should use and interpret this information to make informed choices.’
Source : Straits Times - 17 Jul 2007
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