Private home prices up 0.9% in Q3: URA

Prices rose at a slower pace as sellers sought to dispose of existing stock.

The prices of private residential property rose at a slower pace in Q3 at 0.9% compared to 1.5% in the previous quarter, according to the Urban Redevelopment Authority (URA) flash estimate of the price index for private residential property in Q3.

Overall, the private residential property index increased 1.4 points from 150.8 points in the second quarter 2019 to 152.2 points in the third quarter.

Also read: Private home prices climbed 1.3% in Q2: URA estimates

Prices of condos in the Core Central Region (CCR) and Outside Central Region (OCR) grew at a slightly faster pace than the previous month. Prices of non-landed private homes in CCR expanded by 2.9% in Q3 from2.3% in Q2; whilst condo prices in the OCR inched up 0.7% in Q3, compared to 0.4% in the previous quarter.

The remaining property submarkets registered slower growth or declined. Prices of condos in the Rest of Central Region (RCR) went up by 1.6%, after registering an increase of 3.5% in Q2. Prices of landed homes continued to fall by 2.2% in Q3 following a 0.1% dip in the previous quarter.

OrangeTee & Tie said that the slower pace of price increase is within expectations as most developers and sellers of resale homes kept prices at attractive levels to clear their existing stock.

“Lesser luxury homes (CCR) were also sold last quarter when compared to the prevailing quarter, whereas more mass-market (OCR) and city fringe private homes (RCR) were being transacted last quarter, which may have lowered the average pricing for the entire market as reflected by the slower pace of price growth in Q3,” added Christine Sun, Head of Research and Consultancy for OrangeTee & Tie.

Similarly, Knight Frank said that the increase were driven by new sales. "In Q3 2019, some 3,083 units were transacted, compared to 2,187 units in Q2. Whilst there was a jump in foreigner new home purchases from 131 units in Q2 to 234 units in Q3, there was a significant hike in Singaporean new home purchases, from 1,772 units to 2,566 units in Q3," said Lee Nai Jia, head of research, Knight Frank Singapore.

The agency expects prices to remain stable for the rest of the year, as demand for private homes remain healthy.

“We estimate that the number of private homes (excluding executive condominiums) to be sold in Q3 to surpass that of Q2 2019, but lower than the number sold year-on-year. Advanced estimates for Q3 using URA Realis records from 01 July up to 22 September 2019 (downloaded today) show that more than 5,000 private home sales could be inked last quarter. This is more than the 4,766 units sold for the full quarter of Q2 2019,” OrangeTee & Tie noted.

New home sales are also poised to surpass 3,000 units in Q3 which are higher than the number sold in Q2 2019, the agency added.

"Improvements in the price index and sales in Q3 are likely to encourage more buyers entering the market from now till next year. Notwithstanding, buyers are more discerning, as witnessed by sales in projects that offer value in both high-end and mass-market segments. We also expect growth in sales and prices to remain sustainable from now till end 2020, as the Additional Buyers’ Stamp Duties are likely to curb any sharp increases in demand and prices," Knight Frank's Lee said.

The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-September.

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Is HDB resale a good investment?
OrangeTee’s Dallas Hassan and Huttons Asia Real Estate Groups’ Lee Sze Teck answer frequently-asked questions on HDB.
Spoof proof: How the new SMS Sender ID Registry prevents phishing
Phishing remains a huge problem in Singapore, with reported incidents jumping from 16 to 5,020 within four years.