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By: Leong Sze Hian

I refer to the article “4,841 HDB flats on offer in August BTO exercise”. It states that the price for Sembawang East Delta@Canberra BTO 4-room HDB flats starts from $240,000.

BTO price increased by 6.7%?

In the May 2013 BTO launch – Sembawang Eastbank, Eastbrook and Eastwave@Canberra were selling 4-room flats from $225,000.

This is an increase in the lowest priced 4-room flats by 6.7 per cent ($240,000 divided by $225,000).

URA index fell 9.4%?

But, the URA resale price index fell by about 9.4 per cent during the similar period (134.7 20162Q divided by 148.6 20131Q).

Please explain 16.1 % price differential?

If so, shouldn’t prices have fallen by about 9.4 per cent, instead of having increased by 6.7 per cent?

How do we explain the 16.1 per cent (9.4 + 6.7) price differential?