Private home prices rise at a much slower pace in Q3

Romesh Navaratnarajah29 Oct 2018

property market singapore

The URA’s price index rose 0.5% in Q3, compared with the 3.4% increase in the quarter before.

Private residential property prices grew at a much slower pace in the third quarter of 2018 as the government’s latest round of property cooling measures in July took their toll.

The Urban Redevelopment Authority’s private residential property price index rose 0.5 percent in Q3 to 149.7 points, compared with the 3.4 percent increase seen in the previous quarter.

More: Sentiment Among Property Developers Down On July Cooling Measures

Landed property prices climbed 2.3 percent, while prices of non-landed properties remained unchanged.

This comes as only the Core Central Region (CCR) registered a price increase of 1.3 percent. The Rest of Central Region (RCR) and Outside Central Region (OCR) saw prices drop 1.3 percent and 0.1 percent respectively.

With the slower growth in prices, take-up rate during the period was the highest in over four quarters at 3,012 units.

“Despite the healthy take-up, it was unable to match the number of launches during the quarter – at its highest number since Q2 2013,” said Desmond Sim, CBRE’s head of research for Singapore and Southeast Asia.

“This resulted in an increase in the number of unsold units to 30,467 units (excluding ECs) in Q3 2018 – from 26,943 units last quarter.”

Moreover, there is a potential supply of “14,200 units from the awarded GLS (6,700) and en bloc sites (7,500), which have not been granted planning approval but will be coming onto the market next year”.

With this, Sim expects growth in the price index to be “in the positive region albeit more moderate or zero growth in the next 12 months”.

Home buyers looking for Singapore Properties may like to visit our ListingsProject Reviews and Guides.

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

POST COMMENT

You may also like these articles

Developers may need to rethink pricing amidst new shoebox rule

New URA rules have slashed the maximum number of units that can be built outside the central areas.The Singapore government’s new policy on apartment sizes may come as good news to home buyers, but

Continue Reading24 Oct 2018

Residential investment sales plunge 63% in Q3

Investment sales in the residential sector plunged to $2.2 billion due to a lackluster en bloc market.Overall property investment sales in Singapore declined from nearly $10 billion in the previous qu

Continue Reading25 Oct 2018

HDB resale prices dip 0.1% in Q3

HDB resale prices have been lacklustre due to the large supply of unsold BTO flats, says one analyst.Despite a higher number of transactions, resale prices of HDB flats dipped by 0.1 percent in Q3 201

Continue Reading29 Oct 2018