The Housing Development Board (HDB) Resale Price Index (RPI) hit a record high of 155 points in Q1 2010. The index rose by 2.8% in Q1 2010 over the previous quarter.

However, this was a slower pace of increase compared with the 3.9% increase from Q3 to Q4 2009. In terms of volume, transactions declined by about 5%, from 8,926 cases in Q4 2009 to 8,484 cases in Q1 2010.

The median Cash-Over-Valuation (COV) amount amongst all resale transactions has also stabilised at $25,000 in Q1 2010, a marginal increase of $1,000 over Q4 2009. Some 93% of the resale cases transacted above valuation in Q1 2010. This figure is the same as that of Q4 2009.

According to PropNex, 3-room and 4-room transactions, which accounted for 67% of all resale transactions in the last quarter fetched median COVs of $22,000 and $25,000 respectively while 5-room and executive flats were transacted at median COVs of $28,000 and $30,000 respectively.

“This further proves that market tolerance is being reached amidst the government’s continuous release of Built-To-Order (BTO) flats,” explained PropNex CEO Mohamed Ismail.