Prices of private homes rise 1.5% in 2Q2019

By Amy Tan / EdgeProp Singapore | July 26, 2019 3:03 PM SGT
Prices of private homes increased by 1.5% q-o-q in 2Q2019, reversing price falls recorded in the two previous quarters, according to URA data.
“For the first half of this year, prices have increased by 0.8%, which is still within our earlier projection of between 1% and 3% for the full year,” says Christine Sun, head of research and consultancy, OrangeTee & Tie (OTT).
Prices of landed properties decreased by 0.1% q-o-q in 2Q2019 compared with the 1.1% q-o-q increase in the previous quarter. Meanwhile, prices of non-landed properties increased by 2% q-o-q in 2Q2019, compared with the 1.1% q-o-q decrease in the previous quarter.
In the Core Central Region (CCR), prices of non-landed properties increased by 2.3% q-o-q in 2Q2019, compared with the 3% q-o-q decrease in 1Q2019. Elsewhere, prices of non-landed properties in Rest of Central Region (RCR) increased by 3.5% q-o-q, reversing the 0.7% q-o-q decrease in the previous quarter. Meanwhile, prices of non-landed properties in Outside Central Region (OCR) increased by 0.4%, compared with the 0.2% increase in the previous quarter.
Lee Sze Teck, Huttons Asia’s director of research, points out that the gains in the CCR and RCR supported the 1.5% increase in the URA price index in 2Q2019. “There were more launches and sales of city fringe projects with average pricing of above $2,000 psf and CCR projects transacting above $3,500 psf,” he says.
He adds: “Rising affluence among residents and non-residents saw them picking up units largely in the price range of $1 million to $2 million. Five years ago, the bulk of purchases were in the range of less than $1 million to $1.5 million.”
Prices of landed properties decreased by 0.1% q-o-q in 2Q2019 compared with the 1.1% q-o-q increase in the previous quarter. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
From April to June, rents of private homes rose 1.3% q-o-q compared with the 1% q-o-q increase in the preceding quarter.
According to OTT’s Sun, recovery of rents was mainly driven by the non-landed home segment where rents rose across all three segments – CCR (1.5%), RCR (1.4%) and OCR (1.2 %). “With the growing political uncertainties and social unrest in Hong Kong, some MNCs may plan to shift their headquarters or key operations to Singapore in...