Prices in the core central region (CCR) and rest of central region (RCR) climbed 2.9 percent and 1.6 percent, respectively. Outside central region (OCR) prices inched up by 0.7 percent in Q3 2019.
Private home prices in Singapore rose for the second consecutive quarter in the third quarter of 2019, despite the escalation of US-China trade tension and the deterioration of global macroeconomic health.
The private residential property index rose 0.9 percent in Q3 2019, compared to the 1.5 percent increase in the previous quarter, showed the Urban Redevelopment Authority’s (URA) flash estimate for Q3 2019.
This comes as non-landed home prices grew 1.7 percent while landed prices dropped 2.2 percent.
“The second consecutive quarterly increase in sales and prices suggest that more buyers previously on the sidelines are coming back to the market. The uncertain economic outlook may also lead more investors to purchase residential properties, an asset that deemed safer than equities, but with more upsides than government bonds,” said Lee Nai Jia, head of research at Knight Frank Singapore.
In particular, prices in the core central region (CCR) and rest of central region (RCR) climbed 2.9 percent and 1.6 percent, respectively. Outside central region (OCR) prices inched up by 0.7 percent in Q3 2019.
CBRE Southeast Asia head of research Desmond Sim attributed the increase in prices to the handful of successful launches that continue to drive the bulk of transactions.
He cited REALIS data, which showed that 3,044 new homes were sold in Q3 2019, accounting for 65 percent of all sales, or up from the 2,144 units in Q2 2019 which made up 51 percent of total sales.
“New launches always help to prop up property prices,” said Christine Li, research head for Singapore and Southeast Asia at Cushman & Wakefield. “This is because developers have not much leeway to launch their new projects lower than the previous projects due to the high land costs paid during the 2017-2018 property boom.”
Looking ahead, Knight Frank expects growth in sales and prices to remain sustainable until the end of 2020, with the Additional Buyers’ Stamp Duties curbing any sharp hike in demand and prices.
And while global forces in the wider economy may continue to influence the housing market, Christine Sun, head of research and consultancy at OrangeTee & Tie, believes that the city-state’s “robust population growth, rising household income, and positive employment numbers will remain key drivers for both home prices and demand over the long term”.
“In view of the current economic uncertainties, Singapore will remain an attractive safe haven for foreign investors to park their funds here,” she added.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com