Private home prices rise 0.8% q-o-q in 3Q: URA flash estimates
By Charlene Chin
/ EdgeProp Singapore |
SINGAPORE (EDGEPROP) - On the back of pent-up demand and despite bleak macroeconomic conditions, private residential property prices in Singapore rose by 0.8% q-o-q in 3Q2020, based on URA flash estimates.
Private home prices are now 2.7% above the most recent peak in 3Q2018 and 0.5% below its all-time peak in 3Q2013, observes Tricia Song, head of research for Singapore at Colliers International. Year-to-date, private residential prices are up by 0.1%.
The uplift in prices in 3Q2020 was led by landed homes, which transacted at an increase of 3.8% q-o-q.
Within the non-landed segment, the Core Central Region (CCR) was the only region to see prices fall, registering a decline of 4.9% q-o-q. Non-landed homes in the Rest of Central Region (RCR) saw a price increase of 3.3% q-o-q, while non-landed home prices in the Outside Central Region (OCR) rose 1.7% q-o-q.
Year-to-date, non-landed home prices in the CCR have fallen by 4.5%. The CCR home price index is now 7.1% below its recent peak in 3Q2018, and 9.3% below its all-time peak in 3Q2013, notes Song.
Property consultants point to sales in the secondary market at fairly low prices that commanded the decline in the CCR price index. “As a rough guide, the median price of non-landed resale homes in CCR in 3Q2020 was $1,773 psf, significantly below the $2,045 psf recorded in the previous quarter,” says Ong Teck Hui, senior director of research & consultancy at JLL.
The fall in CCR price index could also be due to discounts offered at selected launches, says Song. Leedon Green recorded 15 caveats in 3Q2020 at a median price of $2,546 psf, compared to 35 units sold at $2,782 psf when it was launched in January 2020. 8 Saint Thomas recorded 19 caveats in 3Q2020 at a median price of $2,793 psf, compared to earlier units sold at $3,100-3,200 psf. Fourth Avenue Residences sold 57 units in 3Q2020 at a median price of $2,238 psf, compared to its 2019 average launch price of $2,400-2,450 psf, while The Avenir sold 22 units in 3Q2020 at a median price of $3,075 psf, compared to 18 units sold at a median price of $3,245 psf in 1Q2020, when it was launched.
Meanwhile, RCR was the “best performer” among the other non-landed market segments, as it experienced the steepest increase in new sales volume, which also contributed 68% of total non-landed transactions in RCR during 3Q2020, adds Ong.
The top-selling new project in RCR was Forett At Bukit Timah, which sold 236 units at a median price of $1,932 psf. Other projects which garnered strong sales include JadeScape (155 units), The Woodleigh Residences (140 units) and Daintree Residences (135 units).
Mega launches such as Parc Esta, Stirling Residences and JadeScape have sold 87, 86 and 155 units respectively in 3Q2020, says Song, noting that prices at these developments have risen as inventory has thinned out. For instance, Stirling Residences fetched a median price of $2,004 psf in 3Q2020, compared to the median price of $1,746 psf during its launch in July 2018.
Non-landed home prices in the RCR rose by 1% year-to-date, and are now just 0.4% below its peak of 3Q2013, adds Song.
Meanwhile in the OCR, non-landed home prices have shown an increase of 1.4% year-to-date, observes Song. Consultants attribute this to the pick-up in transaction volumes in the market segment over 3Q2020, backed by a lack of future new supply in the region, and the prices being relatively affordable, compared to the other market segments.
Earlier launches have continued seeing a progressive take-up rate, notes Song. Florence Residences sold 156 units at a median price of $1,559 psf in 3Q2020, compared to 149 units at $1,513 psf in 2Q2020. Treasure at Tampines moved 296 units at $1,353 psf in 3Q2020, compared to 185 units at $1,357 psf in 2Q2020.
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Developers have so far sold 2,844 new private homes (excluding ECs) in 3Q2020, a 66% increase q-o-q, based on caveats lodged with URA as at Oct 1. Despite the increase in new sale transactions, total units sold in 3Q2020 still show a 13.3% y-o-y decline, lagging behind that of 3Q2019, when 3,281 units were sold.
The rebound in resales has been more significant, notes Song, as the “circuit breaker” period from April to June affected the secondary market more than the primary market. As a result, the number of transactions in the resale market jumped 185.3% q-o-q and 9.3% y-o-y to 2,713 units in 3Q2020.
Overall, property consultants expect that the recent clampdown on the re-issuance of the Option to Purchase (OTP) to buyers will likely cool down developer sales somewhat, as it would prevent marginal buyers from committing prematurely.
Under the ruling, the OTP of a property will expire three weeks after the Sale and Purchase Agreement and copy of the title deeds are delivered to a potential home buyer. This means that a home buyer will have to gather the necessary funds within a three-week window.
However, the long-term impact of the ruling on sales is likely to be negligible, as the housing market is still supported by sufficient demand, the consultants say.
Discover more about the Leedon Green, best selling freehold project in prime District 10 here
Check out the latest listings near: Leedon Green, 8 Saint Thomas, Fourth Avenue Residences, The Avenir, Forett At Bukit Timah, JadeScape, The Woodleigh Residences, Daintree Residences , Parc Esta, Stirling Residences, Florence Residences, Treasure at Tampines
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