HDB has been working with a consultant from the National University of Singapore (NUS) Department of Real Estate to review the Resale Price Index (RPI) computation methodology, National Development Minister Khaw Boon Wan announced in a blog post today.
The review has recently been completed, and HDB will be sharing more details soon.
Published every quarter, the RPI gives a general sense of price movements in the HDB resale market, and serves as a useful reference point for home buyers and sellers in their decision-making.
Mr Khaw said the HDB resale market has seen significant changes in recent years, and the current RPI may not adequately reflect the resale market.
Citing some examples, he said more newer flat models, including taller blocks, are being transacted in the resale market.
Additionally, there are now a lot more resale transactions for flats in newer towns, such as Punggol, Sengkang and Sembawang, but the current RPI does not capture movements in resale flat prices in these towns.
As there is now greater variance in the age profile of flats being transacted in the resale market, the new index should also take that into account in making price comparisons.
“It is therefore timely to review the RPI methodology to better capture price changes over time, and control for the variations in attributes of the resale flats transacted. This will allow the index to continue serving its purpose of providing timely and reliable information on the resale market movements,” he said.
Image source: Angcr; Wikimedia Commons
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
