Prices of HDB resale flats have hit a new high in the second quarter of this year.

According to the latest statistics released by the Housing Development Board (HDB), the resale price index in the second quarter this year rose 4.1 per cent over the previous quarter, compared to the increase of 2.8% in the first quarter of this year.

The median Cash-Over-Valuation (COV) amount amongst all resale transactions also increased to $30,000, with the proportion of resale cases transacting above valuation increasing to 96%.

Units in the Bishan area garnered the highest median COV amount as compared to other towns, with flats going for $40,000 above valuation on average in Q2.

However, Singaporeans seem undeterred by the jump in prices, as resale transactions rose by about 7% this quarter, from 8,484 cases.

Increase in supply of flats to meet demand

HDB says it is ramping up its new flat supply this year to meet the demand from first-timer households. More Design, Build and Sell Scheme (DBSS) flats and Executive Condominiums (EC) units will also be launched.

It will hopefully provide more choices for first-timer households, and divert some demand from the HDB resale market, said the HDB.

The Built-to-Order (BTO) projects in the second half of the year will located in towns such as Woodlands, Yishun, Punggol and Sengkang, for a "good geographical spread".

For this month, flat buyers can look forward to about 1,000 BTO flats in Jurong West and Bukit Panjang.

To provide more choices for higher-income earners, 4,700 upcoming units are to be launched under the Design, Build and Sell Scheme (DBSS) and Executive Condominium (EC) Housing Scheme: