In Q1 2019, the PropertyGuru Property Index, which tracks housing supply in Singapore fell by over 13 percent from the previous quarter. The slowdown could be attributed to the property cooling measures that were rolled out in July 2018.
The roll-out of new private homes for sale has been slower than initially predicted, with property developers holding back on new launches. For the whole of 2019, analysts expect about 40 to 60 new launches, which could bring about as many as 23,000 to 25,000 private housing units to the market.
Price declines were also observed in the prime districts, where home prices saw the first quarterly dip since Q4 2016 – the peak of the previous round of property cooling measures.
However, demand remained buoyant for certain new prime district projects such as the freehold Boulevard 88, which sold 20 out of 25 units and was launched at an average price of $3,550 psf.
Announcement of the new Serangoon North MRT station along the upcoming Cross Island Line also boosted sales at Affinity at Serangoon, which saw a take-up of 88 units out of the 250 units (about 35%) released during its Phase II launch in February.
But global headwinds remain and interest rates have been rising despite a pause in global interest rate hikes. Moreover, bond yield compressions are leading to fears of an impending recession.
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PropertyGuru’s Property Index aggregates and indexes data from our over 200,000 private residential property listings in Singapore to demonstrate the movement of supply side pricing. It provides a view on seller optimism and indicates the price level that real estate developers and homeowners feel they can fetch for their respective properties.