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Case Study on Tampines Executive flats
A study was done on the capital appreciation of Executive flats in Tampines during the past 12 months.
The parameter of the study is to compare prices of two categories of E flats – one group with poor attributes (therefore lower sale prices) and the other with good attributes (therefore higher sale prices) - and track the price mobility. (The reason E flats are chosen is because they best reflect the economic situation)
The study yielded the following results:
PRICE |
October 2006 |
January 2007 |
May 2007 |
Nov 2007 |
Lowest |
$318,000
(Blk 309 - LF)
14 yrs old |
$345,000
(Blk 328 / LF) |
$315,000
(Blk 430 - MF)
21 yrs old |
$365,000
(Blk 427 - LF)
21 yrs old |
Highest |
$436,000
(Blk 856E - MF)
12 yrs old |
$466,000
(Blk 856 / HF) |
$448,000
(Blk 865B - LF)
12 yrs old |
$565,000
(Blk 856B - MF)
12 yrs old |
* LF = Low Floor / MF = Mid-Floor / HF = High Floor
- The price growth year-on-year (October 06 and November 07) between Executive flats with same attributes:
Price increase of Lowest priced E flat = $47,000 (14.7% increase in price)
Price increase of Highest priced E flat = $129,000 (30% increase in price)
- Compare First half-year growth (Oct 06 and May 07) between Executive flats with same attributes:
Price increase of Lowest priced E flat = - ($3,000) (price actually dropped)
Price increase of Highest priced E flat = $12,000 (2.8% increase in price)
- Compare Second half-year growth (May 07 and November 07) between Executive flats with same attributes:
Price increase of Lowest priced E flat = $50,000 (15.7% increase in price)
Price increase of Highest priced E flat = $117,000 (26.8% increase in price)
Conclusion
The following conclusions were drawn after the study:
(1) The comparative data shows that the price increase occurred only in the second half of 2007 and the forces that drove the second half surge were quick and powerful.
(2) Price surge in E flat occurred after prices for private homes had reached a new historic height. It also showed that many middle-income group purchasers have been squeezed out of the private home market.
(3) Resale flats with good attributes, such as high floor level, younger in age (newer in flat design) and closer to amenities like MRT station and shopping mall, achieve higher and faster appreciation in capital value.
It is a little pre-matured to conclude if speculative activities have been channelled into the HDB resale market.
Annex B
The tables below show that the 10 largest Housing estates have the highest number of flats sold; while the 3 smallest housing estates enjoy the highest transacted prices, due to rarity and good location.
Estate |
Total Number of Flats |
Flats Sold |
(1) Jurong West |
66,133 |
163 (2nd in volume) |
(2) Tampines |
61,109 |
139 (5th in volume) |
(3) Woodlands |
56,221 |
224 (top in volume) |
(4) Bedok |
55,293 |
153 (3rd in volume) |
(5) Hougang |
47,227 |
128 (7th in volume) |
(6) Yishun |
46,205 |
141 (4th in volume) |
(7) Ang Mo Kio |
43,768 |
108 (9th in volume) |
(8) Bt Merah |
40,054 |
103 (10th in volume) |
(9) SengKang |
39,534 |
131 (6th in volume) |
(10) Choa Chu Kang |
38,933 |
114 (8th in volume) |
Estate |
Total Number of Flats |
Bt Batok |
31,522 |
Toa Payoh |
30,755 |
Bt Panjang |
29,498 |
Kallang/ Whampoa |
28,203 |
Pasir Ris |
27,504 |
Geylang |
26,560 |
Queenstown |
25,975 (High resale prices) |
Clementi |
23,460 |
Jurong East |
21,903 |
Serangoon |
21,204 |
Bishan |
18,971 (High resale prices) |
Sembawang |
17,664 |
Punggol |
15,727 |
Central |
7,651 (Top in resale price) |
Marine Parade |
6,535 (High resale prices) |
Bt Timah |
2,423 (High resale prices) |
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