Leong Sze Hian
What has record HDB prices got to do with falling private property prices and the number of students graduating from tertiary institutions?
According to the article, “HDB prices hit record high” (Today, Jul 24), prices of HDB flats rose 1.4 per cent in the second quarter. Sales of HDB resale flats also surged 58 per cent, reflecting improved market sentiment, the report said.
Resale transactions were 10,184 in the second quarter, compared to 6,446 in the first quarter.
In contrast, “private home prices fell 4.7 per cent in the second quarter. It’s the 4th straight quarter decline but it is less than the 14.1 per cent sharp drop in the first quarter. (“Home prices dip 4.7%”, ST, Jul 24).
Historically, HDB and private property prices have more or less moved in close tandem with each other, most of the time. So, why are they moving in opposite direction now?
Well, the answer may lie in an altogether seemingly unrelated statistic – the number of graduates.