Private residential prices rise 2.9% in 1Q2021: URA flash estimates

SINGAPORE (EDGEPROP) - Private residential prices in Singapore increased by 2.9% in 1Q2021, higher than that of a 2.1% q-o-q rise in 4Q2020, according to URA flash estimates.

The increase in prices in the first three months of the year was attributed largely to the price of landed homes, which rose by 5.6% q-o-q and 7.8% y-o-y, and non-landed homes in the Rest of Central Region (RCR), where prices rose by 6.1% q-o-q and 11.7% y-o-y.

A total of 2,527 non-landed homes were sold in the Rest of Central Region (RCR) last quarter, notes Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie.

New launches in the RCR also drove sales, say consultants. Normanton Park, which registered the highest transaction of 720 units last quarter, changed hands at a median price of $1,765 psf. This is higher than the $1,704 psf median price for non-landed homes in RCR in 4Q2020, notes Sun.

Other projects including The Reef at King's Dock ($2,257 psf, 337 units), Amber Park ($2,445 psf, 66 units), Avenue South Residence ($2,099 psf, 43 units) and One Pearl Bank ($2,407 psf, 34 units) were transacted above $2,000 psf.

“New launches continue to churn sale volumes, with demand fuelled by HDB upgraders as a result of the buoyant HDB resale market (the HDB Resale Index rose by 2.8% q-o-q and 8.0% y-o-y in 1Q2021 according to HDB flash estimates), recycled capital from those with prior property capital gains transiting their children into the private market, as well as retiree downgraders faced with empty-nest syndrome,” says Leonard Tay, head, research, Knight Frank Singapore.

Meanwhile, prices for residential homes in the Outside of Central Region (OCR) rose 0.9% while prices dipped by 0.3% in the Core Central Region (CCR).

“Despite the improving economic outlook and expectations of higher inflation, interest rate hikes are unlikely to occur in the near term,” says Sun. “Singapore’s economy is expected to see a strong rebound this year which will help to lift buyer sentiment and lend support to Singapore’s property market.”