Private residential prices fall 0.6% in 1Q2019 for second straight quarterly decline

/ EdgeProp
April 1, 2019 7:30 PM SGT
The price index for private residential property fell by 0.6% q-o-q in 1Q2019, compared to a 0.1% q-o-q decline recorded in 4Q2018, according to the latest flash estimates by the URA.
With two straight quarters of price declines, overall private home prices are now 0.7% below the most recent peak in 3Q2018, and 3.8% below the all-time peak in 3Q2013, says Tricia Song, head of research for Singapore at Colliers International.
“Weaker sentiment in the residential market is likely to persist in the near term and may discourage buyers from committing early for fear that prices could erode further in the coming quarters,” says Christine Li, head of research, Singapore, at Cushman & Wakefield.
The price index for non-landed private residential properties in the city-centre, or Core Central Region (CCR), fell by 2.9% q-o-q compared to the 1% decrease in the preceding quarter. This is the sharpest quarterly price decline for the segment since a 5.2% q-o-q decline in 2Q2009 following the Great Financial Crisis. Overall prices in the CCR have now fallen by 3.9% since its last peak in 3Q2018, says Song.
One reason for the decline could be a normalisation of the segment’s prices post-collective sales frenzy, says Li. “During the recent collective sales boom, many en bloc speculators could be paying a premium to those en bloc hopefuls. But with the collective sales boom coming to an end, the premium effect is no longer on the horizon.”
A decline in median prices for certain projects as developers seek to clear inventory could be another reason for the decline in CCR prices during the quarter. They include projects like 3 Cuscaden, Marina One Residences, Martin Modern, New Futura, South Beach, and TwentyOne Angullia Park, says Song.
Boulevard 88 (Picture CDL)
At the same time, projects that were launched last quarter, such...