It lead the growth of overall home prices in Singapore which rose 3.4%.
There will be more private property prices this year, propelled by high demand, robust en bloc activity, and confident land bids by developers, PropertyGuru said.
According to its Property Index Q1 2018, Singapore property prices rose 3.4% to 102.6 in Q1 2018, from 99.2 in the previous quarter. This marks the fourth straight quarter of increases in supply pricing. On a yearly basis, the Index recorded a 9.3% increase.
The downtown core and south-central regions, comprising districts 1 to 8, posted the highest quarter-on-quarter increase of 5.63% in asking prices. This was followed by prime districts 9, 10 and 11, which saw prices rise by 5.56% during the same period.
Other regions which recorded notable increases in Q1 include Changi and Pasir Ris in the east (up 3.16%) and city fringe locations like Balestier and Geylang (up 2.74%).
Whilst supply-side pricing rose in Q1 2018, housing supply in the market declined 16.3% in the first quarter. Housing supply fell significantly in Q1 2018 as sellers held back launches due to the Chinese New Year break in February.
“Supply is expected to see a pick up in the second quarter due to highly anticipated launches including Twin Vew at West Coast Vale, Amber 45, Margaret Ville in Margaret Drive, and The Affinity at Serangoon,” the Index said.
Moreover, more buyers are expected to enter the market this year, as owners of en bloc projects go on a search for replacement homes.
Separately, interest rates have been rising steadily and this will cause many home buyers to assess if they can service their mortgages, PropertyGuru noted. “Those looking at investment properties should also keep an eye on the vacancy rate (7.4%) and be wary of overstretching their finances, or overly relying on rental income for mortgage payments,” it added.
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