Private residential property prices drop more than expected.
Prices of private homes in Singapore fell 1.5 percent in the third quarter of 2016 after declining 0.4 percent in the previous quarter, marking the largest quarterly fall in prices since Q2 2009, according to the Urban Redevelopment Authority’s (URA) updated price index.
Prices of non-landed properties in the Core Central Region (CCR) fell 1.9 percent, followed by the Rest of Central Region (RCR) and Outside Central Region (OCR), both of which saw a 1.0 percent decrease.
“The deeper fall in CCR prices could be due to the inclusion of benefits by delicensed projects in the index,” said property consultancy OrangeTee.
Meanwhile, rents of non-landed properties decreased 1.4 percent, compared to the 0.4 percent decline in the previous quarter. Rents fell 1.4 percent in the CCR, 0.6 percent in the RCR and 2.4 percent in the OCR.
“(The) outlook for the rental market remains gloomy given the substantial number of upcoming completions, impact of a slowing economy on the job market and restrained inflow of foreigners,” said OrangeTee.
It added: “The low-interest rate environment may continue to persist, given the headwinds facing the global economy. This would continue to fuel property demand as investors search for yield. Demand may tilt towards the primary market, as the rental market remains soft. But, amidst falling prices and rents, bargains should surface on the resale market, and investors with holding power should be able to pick up a good deal.”
Source: URA
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
