Prices of private residential properties fell for the ninth consecutive quarter by 0.7% q-o-q in 1Q2016, according to URA's flash estimate. This was steeper than the 0.5% decline in the previous quarter.
However, prices of non-landed homes in Core Central Region (CCR) or the high-end segment bucked the overall trend, inching up 0.4% q-o-q in 1Q2016. It is still too early to tell whether prices of high-end homes have bottomed, although they seem to have stabilised, having fallen by just 0.3% in the previous quarter. The blip could also be due to the sales in Cairnhill Nine where a majority of the units are one- and two-bedroom units. Desmond Sim, head of CBRE Research for Singapore and Southeast Asia, reckons that the success of Cairnhill Nine was probably the reason behind the slight increase of 0.4% in the CCR this quarter.
After softening 4.1% in 2014 and 2.5% in 2015, it is possible to see a gentler decline in the CCR non-landed index in 2016 with a possible flattening provided there is no overly dire impact from the economic slowdown, says Ong Teck Hui, national director of JLL Research
In Rest of Central Region and Outside Central Region, prices of non-landed homes fell and 0.4% and 0.9% respectively.
“Price declines are marginal when calculated quarter on quarter. But the RCR registered a double digit decline of 10.2% from the peak in Q2 2013. Prices in the Core Central Region and Outer Central Region are steadily moving towards double digit falls from the previous peak too," add Sim.
Meanwhile, prices of resale HDB flats slipped 0.1% q-o-q in 1Q2016, after a 0.1% gain in 4Q2015, according to flash estimates by HDB.
HDB will roll out about 4,000 Build-To-Order flats and about 5,000 balance flats in May this year.
JLL expects the residential market to be quite stable this year with prices easing gently if the interest rate environment remains benign and the economic slowdown does not affect buying sentiments too adversely.
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