SINGAPORE (EDGEPROP) - The prices of private residential properties increased by 1.3% in 3Q2019, compared to the 1.5% increase recorded in the previous period, according to the latest statistics by the URA. This latest figure is higher than the earlier flash estimate for the quarter of 0.9%. Cumulatively, prices have risen 2.1% in the first three quarters of the year.
The price increase for non-landed homes was led by the Core Central Region (CCR), which saw prices climb by 2.0% in 3Q2019. This was followed by the Rest of Central Region (RCR) which increased by 1.3%, while prices in the Outside Central Region (OCR) rose by 0.8% during the same period.
Developers sold 3,281 private residential units (excluding executive condos) last quarter, compared to the 2,350 units sold in 2Q2019. This is the highest number of new homes sold in a single quarter since 2Q2013, which saw developers selling 4,538 units. This was just before the government introduced the Total Debt Servicing Ratio in June 2013.
Christine Sun, head of research and consultancy at OrangeTee & Tie, comments: “The positive market performance may not signal a need to put a brake on the property market now by implementing more cooling measures in the near term. The risk of a housing bubble forming is rather remote as this is usually caused by a significant run-up in home prices caused by high speculative demand, runaway land prices, and excessive buying that is fuelled by exuberant spending.”
The total number of new home sales are likely to fall within the consultancy’s projection of 9,000 to 10,000 units sold for the entire year. Slowing economic growth and a rising supply of new homes are also expected to keep a lid on drastic price hikes, says Sun. She expects prices to increase by 1% to 3% for the entire year.
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