WHY DID PRICE OF NEW BTO FLATS INCREASE DESPITE FALL IN RESALE PRICE?

Dear All Singapore Stuff,

I refer to the article “4,841 HDB flats on offer in August BTO exercise” (Channel NewsAsia, Aug 17).

The price for Sembawang [email protected] BTO 4-room HDB flats starts from $240,000.

BTO price increased by 6.7%?

In the May 2013 BTO launch – Sembawang Eastbank, Eastbrook and [email protected] were selling 4-room flats from $225,000.

This is an increase in the lowest priced 4-room flats by 6.7 per cent ($240,000 divided by $225,000).

URA index fell 9.4%?

But, the URA resale price index fell by about 9.4 per cent during the similar period (134.7 20162Q divided by 148.6 20131Q).

Please explain 16.1 % price differential?

If so, shouldn’t prices have fallen by about 9.4 per cent, instead of having increased by 6.7 per cent?

How do we explain the 16.1 per cent (9.4 + 6.7) price differential?

Leong Sze Hian

Check Also

More People Are Finally Seeing The True Colors Of Arrogant and Elitist PAP Members!

Earlier this week, Foreign Affairs Minister Vivian Balakrishnan was caught calling PSP’s Leong Mun Wai …