Private home prices down 0.7% in Q1

Prices of private residential properties in Singapore fell by 0.7 percent in the first quarter of 2016, compared to the 0.5 percent decline in the previous quarter, according to complete data released by the Urban Redevelopment Authority (URA) on Friday, 22 April.

In the Outside Central Region (OCR), prices dropped by 1.3 percent after remaining unchanged in the previous quarter. Prices of non-landed properties in the Rest of Central Region (RCR) remained unchanged, compared to the previous 0.4 percent decline. Prices of non-landed properties in the Core Central Region (CCR) rose by 0.3 percent, compared to the previous 0.3 percent decline. Prices of landed properties fell by 1.1 percent, compared to the 1.8 percent decrease in the previous quarter.

Property Price Index of private residential properties

Source: URA

Rentals of private residential properties fell by 1.3 percent in Q1 2016, the same rate of decline as in the previous quarter.

Rental prices fell across all segments of the market. Rentals of non-landed properties fell by 1.7 percent in the CCR, 0.6 percent in the RCR and 1.2 percent in the OCR, compared to declines of 0.4 percent, 1.6 percent and 1.8 percent respectively in the previous quarter. Meanwhile, rentals of landed properties declined by 2.2 percent, compared with the 2.3 percent decline in the previous quarter.

Excluding executive condominiums (ECs), developers launched 953 uncompleted private condos for sale in Q1, compared to the 1,333 units in the previous quarter. As for ECs, developers launched 534 units for sale, compared to the 505 units launched previously.

Meanwhile, developers sold a total of 1,419 units, excluding ECs, in Q1, compared to the 1,603 units sold in the previous quarter. As for ECs, they sold 762 units over the same period, compared to 573 in the previous three-month period.

Lewis Ng, Managing Director, PropertyGuru Singapore, said: “While the residential property market saw overall prices and transactions fall by 0.7 percent and 11 percent respectively, PropertyGuru saw an eight percent increase in queries for properties for sale over the same period.

“This indicates that Singaporeans are still greatly interested in the property market, doing their research and viewing properties. Many consumers are just biding their time for prices to drop sufficiently, and exploring their options thoroughly before buying a home.”


S’pore property investments up sharply in Q4

Property investment volumes in Singapore’s residential sector rose 14.8 percent to $1.69 billion in Q4 2015 from $1.47 billion in the previous quarter, revealed a Colliers International report.

“The $999.98 million transacted from the sale of three public residential state land parcels helped sustain the overall investment sales value for the residential sector during the final quarter, enabling it to claim its second top spot on the quarter’s sales chart with a market share of 28.4 percent.”

The total value of property investments in Singapore stood at $5.96 billion in Q4 2015, up 39.3 percent from Q4 2014.

In the private residential market, investment sales amounted to $688.83 million in the last three months of 2015. The good class bungalow (GCB) segment led the activity in this sector, with nine GCB transactions worth $160.67 million recorded during the period under review.

“Overall, the transactions involving large landed homes (with each worth above $5 million) contributed 70.1 percent of the $662.75 million accumulated in the private residential sector.”

Colliers noted that the most significant transaction was a two-storey freehold GCB at 61 Dalvey Road. Sold for $26 million, the bungalow is situated on an elevated plot opposite the Israeli Embassy and features five bedrooms and a swimming pool.

Meanwhile, no collective sales were recorded in Q4 2015 as tighter regulations softened end-user demand.

“Collective home sellers, on the other hand, are generally still holding on to their high asking prices. This mismatch in price expectation will likely stall the collective sales market in 2016.”

The consultancy expects public land sales this year to fall below 2015’s level as the government cuts back on public land supply.

“Given that a lower supply of land is available through the Government Land Sales (GLS) programme, the public sector’s contribution to the total investment sales value in 2016 is likely to fall below the $5.27 billion concluded in 2015.”