Prices of HDB resale prices have risen by about 4.2 per cent in the first half of this year, in tandem with the robust economic growth and improved sentiments in the Singapore's property market.

Of the resale flats which changed hands in the second quarter, about 70 per cent were transacted above valuation, with the remaining at or below valuation, flash estimates of the HDB composite resale price index released by the Housing Board today show.

The average cash-over-valuation (COV) amount was about $10,000, according to the HDB data.

The Board says it is releasing the transacted resale prices to help "both flat buyers and sellers in making informed decision, taking into account the prevailing trends in the HDB resale market."

An HDB statement today said it is monitoring the public housing market closely and "will adjust its building plans in line with market demand." It also gave the assurance that there will be an adequate supply of new flats for sale in the coming months.

In response to rising housing demand, HDB has offered about 1,400 new flats under the Build-to-Order (BTO) exercises in the first half of this year, and is planning to offer about 3,000 BTO new flats in various towns in the coming six months.

The new BTO supply, it said, will complement the HDB's sales programme for completed units, with at least one sales exercise launched every month.

"HDB will continue to offer an adequate supply of news flats for sale to flat buyers," assured the Board.

"There is also a large pool of resale flats in the open market. Potential buyers are advised to take into account the overall market trends, instead of relying on reports of high selling prices for isolated resale transactions, when considering flat purchases.

"Given the long-term financial commitment of buying a property, buyers are urged to exercise prudence in making their housing purchase decision."

Property agents say the HDB resale market is experiencing a 'filter-down effect' from the strong
private property market. Homebuyers who are priced out of the private property market are looking for the larger flat types such as the five-room and executive flats.

The asking prices of these larger flats have already risen to as much as $50,000 to $150,000 above valuation, report agents.

Things have perked up since with units now largely selling above valuation, and some flats in the outlying areas going for about $10,000 to $30,000 above valuation, consultants said.

Some sellers are asking for very high prices, hoping to land a windfall similar to those two owners who hit the headlines last month after reaping prices of $675,000 and $720

See: Resale prices of HDB flats