2Q2018 private condo prices up 3.4%, market heading toward new high

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July 3, 2018 2:08 AM SGT
Private home prices continued their steady ascent in 2Q2018, rising by 3.4% after climbing 3.9% in 1Q2018, according to URA flash estimates.
This marks the fourth straight quarter of growth in private home prices. With this increase, private residential prices were up by a cumulative 7.4% in the first six months of 2018, says Tricia Song, Colliers International head of research for Singapore.
While the increase in the URA price index is slightly lower than the 3.9% seen in 1Q2018, it still reflects a buoyant market where prices are on an uptrend, says Ong Teck Hui, JLL’s national director for research and consultancy.
Prices are now only 3.6% below the last peak in 2013, with the market heading towards another peak, says Christine Li, senior director of research at Cushman & Wakefield Singapore. She believes that Singapore property prices are likely to recover to the 2013 peak levels in one or two quarters’ time.

Prices up 9.1% from trough in 2Q2017

According to Li, the broad-based recovery in the residential sector began only in 2Q2017, and prices have already risen 9.1% since then. To put things in perspective, it took eight rounds of property cooling measures to successfully rein in the prices, but the magnitude of the decline was just 11.6% over 15 consecutive quarters, she adds.
The uptick in prices in 2Q2018 was broad-based, but prices in the Rest of Central Region (RCR) led the increase – climbing 5.7%. The Core Central Region (CCR) inched up 1.4% and the Outside Central Region (OCR) saw a 2.9% rise.
Volume of transactions in the RCR rose 34.2% in 2Q2018 (based on caveats recorded to-date) while the overall median price of $1,665 psf during the quarter was 12.7% higher than that in 1Q2018, notes JLL’s Ong. In 2Q2018, new sales in the RCR non-landed market accounted for 45.8% of its transaction volume, significantly higher than 31.7% in the first quarter.

Sharper price growth in RCR

The sharper price growth in the RCR over the past quarter was also due to the higher prices transacted at new launches – 13% to 25% above comparable projects launched over the past 12-18 months, notes Colliers’ Song. Amber 45 sold 86 units at a median price of $2,378 psf in May; Park Place Residences at Paya Lebar Quarter sold 187 units at a median price of $2,045 psf; and Margaret Ville sold 114 units at a median...