SINGAPORE (Dec 4): Singapore's resale price index for public housing will be revised to better capture "significant" changes in the market, according to National Development Minister Khaw Boon Wan.

HDB's Resale Price Index (RPI), published every quarter, is currently computed based on average resale flat prices for a representative basket, by flat types, flat models and regions, based on actual transactions.

The average flat prices for each segment are then aggregated to derive the index.

But with the resale market having "evolved considerably" in recent years, the index in its present form may not adequately capture these changes, Khaw wrote on his blog.

One, there is now a wider range of flats with different designs and attributes.

"For example, newer flat models, including taller blocks, are increasingly being transacted in the resale market," he said.

"We have also reintroduced three-room flats since 2004, after the current RPI was last revised."

Two, there are now a lot more resale transactions for flats in newer towns, such as Punggol, Sengkang and Sembawang, but these towns are not included in the representative basket currently.

"In other words, the current RPI does not capture movements in resale flat prices in these towns," Khaw said.

Three, there is now "greater variance" in the age profile of flats being transacted in the resale market.

"Such variance must be taken into account in making price comparisons."

HDB has been working with a consultant from the NUS Department of Real Estate to review the RPI computation methodology and will disclose the findings soon, he said.