Safety measures cooled residential property market: analyst
However, PropertyGuru’s data showed continued confidence amongst sellers.
The residential property market cooled down in the third quarter (Q3), with private residential property prices rising only by 0.8% quarter-on-quarter (QoQ), as opposed to 3.3% in the previous quarter, according to statistics released by the Urban Redevelopment Authority.
According to real estate firm PropertyGuru, this was brought on by safety measures implemented because of Phase 2 (Heightened Alert) implemented in May.
Although property transaction price growth has slowed, strong QoQ growth of asking prices on PropertyGuru at 3.60% growth, suggested continued confidence amongst property sellers in Singapore.
“Non-landed private property listings on PropertyGuru recorded significant growth this quarter for the first time since Q3 2020, up by 17.6%, reflecting the effects of Phase 2 (HA) safety measures. This may result in a slight delay in the clearing of the supply glut, though unlikely a cause for concern if the strong buying sentiment continues.” PropertyGuru said.
PropertyGuru expects Phase 2 (HA) to continue until 18 August. Developers have already postponed planned launches. PropertyGuru suspects that the developers who have postponed their launches will keep their eyes on those who will proceed as planned.
“That said, if the country manages to overcome this wave of COVID-19 infection and successfully lift the Phase 2 (HA) measures in August as planned, the upcoming quarter will likely see a spike in activity,” PropertyGuru said.