Singapore Property | Prices of private homes in Singapore reduced by 0.5% in 2017 first quarter. The decline rate is similar to that of the previous quarter. This information is based on the flash estimates by the Urban Redevelopment Authority.
In the first quarter of 2017, the prices of landed properties reduced by 2.8% while the prices of non-landed properties did not change.
To be specific, there was a rise of 0.1% in Q1 2017 in the transacted price of non-landed homes that are Outside Central Region (OCR). Non-landed properties in the Core Central Region (CCR) recorded a reduction in prices of 0.2% while the others in the Central Region did not record any change in prices.
According to Head of CBRE Research for Singapore and South East Asia, Desmond Sim, the current URA figures “provide confirmation that the residential market in Singapore is approaching its trough.”
Experts are of the opinion the current URA data indicates that the private residential market is approaching its trough.
Mr. Sim also noted that the drop in the landed homes index was a “function of the transacted projects’ price”.
Major projects may occasionally skew indices. It is, therefore, more important to assess trends over a longer duration especially if there is a wide geographic trend. Going by the current figures, the market should get ready for a landing very soon.
Looking forward, Sim expects the prices of homes to come in at between 0 -2% for the entire 2017.
The property market has been reacting to the property cooling measures introduced to slow the market down in the verge of high demand for property and steep rise in price. These include the ABSD (Additional Buyers Stamp Duty), TDSR (Total Debt Servicing Ratio) and SSD (Sellers Stamp Duty).
On 11 March, the government tweaked the SSD and TDSR by reducing the duration that a seller needs to pay stamp duty from 4 years to 3 years. TDSR rules will not apply for borrowers intending to monetise their after paying 50% of the debt.
Read on more landed development by visiting Elite Residences (A freehold cluster terrace in District 15), Watercove (A freehold cluster development at Wak Hassan) and Place 8 (A freehold cluster development at Paya Lebar Crescent).