By Mr. Propwise

With more than 80% of the resident population in Singapore being housed in Housing Development Board (HDB) flats, the supply and pricing of public housing is a significant factor that affects the demand for and hence pricing of private housing. In this article we will look at the relative price performance of private (as represented by the URA Private Residential PPI) and public (as represented by the HDB Resale Price Index) housing.

From Figure 2.2.1a, we can see that the Private PPI had massively outperformed the HDB Resale Price Index (RPI) until the end of 1994, when the outperformance rapidly contracted. Since then, it has moved largely in line with the HDB RPI, but in a more volatile fashion. As of 2012Q2 the PPI stood at 206.9 versus the HDB RPI of 194.

Except for a sharp spike in the HDB Resale Price Index ...