The Housing & Development Board's (HDB) flash estimate of the resale price index for HDB flats in second quarter 2009 rose 1.2 per cent over the preceding quarter. This reverses a marginal quarter-on-quarter drop of 0.8 per cent registered in Q1.

The resale price index for the full Q2 2009, along with more detailed public housing data for the period and upcoming new flat supply, will be released at the end of this month, HDB said in news release.

PRICES of HDB flats staged a surprising comeback, rising 1.2 per cent in the second quarter after dipping 0.6 per cent in the first quarter this year.

-- ST PHOTO: ALPHONSUS CHERN

Flash estimates from the Housing Development Board (HDB) on Wednesday showed the resale price index rising to 140 - an all-time record high.

Market analysts attribute this increase to the continued demand for HDB resale flats, where cash needed to buy a flat, or cash-over-valuation (COV), has come down since the global economic fallout began last year.

'The popularity of resale flats is holding well against new project launches and design and build projects by private developers,' said PropNex Chief Executive Mohamed Ismail.

'Further, feedback from the ground is that demand in the matured estates far exceeds supply.'

Singapore's private home prices fell for a fourth straight quarter as the economic slowdown weighed on demand. -- ST PHOTO: STEVEN LEE CT

Meanwhile, the slide in private home prices has abated, falling 5.9 per cent in the second quarter, compared to the 14.1 per cent decline in the previous quarter.

More detailed private and pubic housing data for the second quarter will be released at the end of July.