Prices of private residential properties fell 1.5% in 3Q2016: URA flash estimates

By Tan Chee Yuen / The Edge Property | October 3, 2016 10:35 AM SGT
Prices of private residential properties fell for a 12th consecutive quarter by a steeper 1.5% q-o-q decline in 3Q2016 as compared to a 0.4% decline seen in the previous quarter, according to the Urban Redevelopment Authority's (URA) latest flash estimates.
Edmund Tie & Company's head of South-east Asia research, Lee Nai Jia says, "From the demand side, there is still much dry powder in the market, and many have felt that the market has bottomed out." "There is more demand in Jurong East due to the growth potential of the area which includes the High Speed Rail (HSR) project, plans for Jurong Innovation District and a second CBD in Jurong."
Prices of non-landed private residential properties in the Core Central Region (CCR) fell 1.8% q-o-q in 3Q2016 as opposed to a 0.3% increase in 2Q2016. In Rest of Central Region (RCR), prices dipped 1.3% in 3Q2016, in contrast to a 0.2% increase in 2Q2016. Similarly, prices in Outside Central Region (OCR) saw a further decline of 1.2% in 3Q2016, following a 0.5% dip in 2Q2016.
CBRE’s head of research for Singapore and Southeast Asia, Desmond Sim notes that price corrections have hit double digit declines since the peak and this might prompt the relevant authorities to re-explore the possible tweaking of measures.
CBRE expects the residential market to prepare for a soft landing by the end of 2016 and followed by a long term trough.
According to URA, the flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment, and data on units sold by developers, including both licensed and de-licensed projects until mid-September.
Meanwhile, prices of resale HDB flats continued to remain unchanged for the second straight quarter in 2Q2016, according to flash estimates by HDB.
ERA Realty's key executive officer, Eugene Lim says, "Many buyers have been committing to a purchase as prices these days are very reasonable; with most sellers having very realistic price expectations." This price stability is expected to be a continued draw for buyers with immediate housing needs to buy resale, he adds.
HDB will roll out about 5,090 Build-To-Order flats in Bedok, Bidadari, Kallang/Whampoa and Punggol, and about 5,000 balance flats in November this year.
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