Private property index climbs 0.5% in 3Q2018

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October 1, 2018 5:05 PM SGT
According to its latest flash estimates, the URA’s private residential property index rose 0.5% in 3Q2018. It is a “significant moderation” from the 3.4% increase in the previous quarter, and a sign that the property cooling measures implemented on July 6 are slowing price growth in the private property market, says Ong Teck Hui, national director of research and consultancy at JLL Singapore. He expects any price increase to remain low or flatten out over the next few quarters.
This effect is in line with the government’s intent to achieve a gradual, sustainable price appreciation in the longer term, says Leong Boon Hoe, COO of List Sotherby’s International Realty. But he notes that there is still “sufficient appetite from serious buyers who are likely to be first time buyers or PRs less affected by the cooling measures”. By the end of September this year private home prices have risen 7.9% since the start of the year, and home values are 3.2% lower than the last peak in 3Q2013, says Tricia Song, Colliers International head of research for Singapore.
The landed housing segment was the most resilient in 3Q2018, where the price index rose by 1.7%. Despite prices rising over the past year they are still seen as relatively attractive by many buyers, says Ong.
In the non-landed home segment, the price index in the Core Central Region recorded the highest increase of 1.2%. Price growth in the CCR was led by sales at 8 St. Thomas and Wallich Residences, says Song. The former has sold more than 20 units at a median price of $3,226 psf, while Wallich Residence sold 11 units at a median price of $3,531 psf, according to Colliers’ Song. New Futura and Martin Modern have maintained their median prices from the previous quarter, selling 14 units at $3,558 psf and 28 units at $2,746 psf respectively.
8 Saint Thomas sold more than 20 units at a median price of $3,226 psf (Picture: Samuel Isaac Chua/The Edge Singapore)