Private residential price index climbs 1.3% in 2Q2019, led by benchmark prices in CCR and RCR

The second quarter of this year saw the private residential property index climb 1.3%, compared to the 0.7% decline recorded in 1Q2019, according to flash estimates released on Monday (July 1) by URA. “This is the first quarter during which prices have exceeded 1% since the imposition of cooling measures in July 2018,” says Lee Sze Teck, head of research for Huttons Asia.
Prices of non-landed properties rose 1.6% in 2Q2019, compared to a 1.1% decline in the previous quarter. Prices of landed properties rose 0.2% after registering a 1.1% increase in 1Q2019.
Credit: URA
For the non-landed segment, prices in the Core Central Region (CCR) increased by 1.5% compared to the 3% decrease in the previous quarter, while prices in the Rest of Central Region (RCR) climbed by 3% after recording a 0.7% decrease in 1Q2019. The latest estimates also show the Outside Central Region (OCR) recording a 0.5% increase in prices, compared with a 0.2% rise in 1Q2019.
A gradual increase in sales of new projects has given confidence to some developers that buyers are increasingly receptive to a higher price point and are committing to a purchase, says Lee. “There were more launches and sales of city fringe projects with an average pricing of above $2,000 psf. This also led to some repricing for earlier launched city fringe projects and resale developments,” he says.
The recent price uptick is likely led by transactions in the CCR and RCR, as many new projects are selling at new benchmark prices for their locations in recent months, says Christine Sun, head of research and consultancy at OrangeTee & Tie.
Credit: URA
Based on URA caveat data as of July 1, 52.7% of non-landed property transactions over the last three months came from new home sales, against resale transactions of 46.6%. Over the same period...