In a sign that the Singapore property market has turned the corner, private home prices rose for the first time in nearly four years in the third quarter, latest flash estimates from the Urban Redevelopment Authority on Monday (Oct 2) show. Prices went up 0.5 per cent in the three months ended Sept 30, versus the 0.1 per cent decline between April and June 2017.
Parc Botannia - the last upcoming condo launch in 2017, expected to be a sellout. Click to register for soft launch
The private residential property price index now stands at 137.3 points, whereas the figure was a record 154.6 points before going on 15 straight quarters of decline. Flash estimates are compiled based on transaction prices in contracts submitted for stamp duty payment and data on units sold by developers until mid-September.
The price index increase is seen as a strong signal that the market has turned. However, as the TDSR framework continues to keep a lid on prices, any price increase may be gradual.
The price index increase is seen as a strong signal that the market has turned. However, as the TDSR framework continues to keep a lid on prices, any price increase may be gradual.
Rezi 35 - upcoming freehold residential project to launch next month - less than 10 mins walk to Paya Lebar Square
Based on the positive sentiment in both primary and secondary markets and a sense of greater urgency by buyers and investors, experts estimate that 21,000 to 23,000 units may be sold for 2017 (new and resale); an increase of 28 per cent to 40 per cent over last year’s total of 16,378 units.
In the latest estimates, prices of private residences in the suburbs, or outside central region (OCR) rose by 0.7 per cent, after a 0.3 per cent decline in the preceding quarter. In the city centre, or core central region (CCR), prices of non-landed private residential properties increased by 0.2 per cent, rebounding from a 0.5 per cent drop in the second quarter. Prices in the rest of the central region (RCR), or city fringes remain unchanged.
In the latest estimates, prices of private residences in the suburbs, or outside central region (OCR) rose by 0.7 per cent, after a 0.3 per cent decline in the preceding quarter. In the city centre, or core central region (CCR), prices of non-landed private residential properties increased by 0.2 per cent, rebounding from a 0.5 per cent drop in the second quarter. Prices in the rest of the central region (RCR), or city fringes remain unchanged.
Kingsford Waterbay - beautiful new launch condo offering rare riverside relaxed lifestyle. More than 85% sold.
Last week, OCBC and Morgan Stanley had told clients they expected the first price upturn since 2013 in the third quarter of this year. Morgan Stanley had projected a 0.8 per cent quarter-on-quarter rise, while OCBC Investment Research wrote that it believed “the bottom is actually behind us”. Some of the reasons cited for expectations of a turn in the property cycle include better sales volumes and higher prices at new launches this year.
In the first half of 2017, the total transaction volume in both the primary and secondary markets was 12,107 units, up 64 per cent compared to the first half of 2016. Market sentiment has picked up considerably this year, despite the Government remaining firm that property cooling measures are unlikely to be lifted any time soon. In March, however, the Seller’s Stamp Duty was tweaked slightly, stoking buyer optimism. The duty, paid by sellers on residential properties, was reduced, while rules on loan thresholds were also eased slightly.
In the first half of 2017, the total transaction volume in both the primary and secondary markets was 12,107 units, up 64 per cent compared to the first half of 2016. Market sentiment has picked up considerably this year, despite the Government remaining firm that property cooling measures are unlikely to be lifted any time soon. In March, however, the Seller’s Stamp Duty was tweaked slightly, stoking buyer optimism. The duty, paid by sellers on residential properties, was reduced, while rules on loan thresholds were also eased slightly.
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