Singapore Property | Prices of Private Home Increases in Q4 2020 by 2.2%; while new home sales saw a decrease demand. This increase in home prices was mainly driven by non-landed properties located in several regions. The Core Central Region (CCR) and the Rest of Central Region (RCR) saw increases of 3.2% and 4.4% quarter-on-quarter respectively. Outside of Central Region (OCR) saw non-landed property prices increase by 1.8% quarter-on-quarter.
“The increase in prices is testament to foundational demand and great liquidity in the private residential market,” said Associate Director of Research for Singapore and Southeast Asia at Cushman & Wakefield, Wong Xian Yang.
Director of Research at Huttons Asia, Lee Sze Teck, also said that the slight increase in prices; display that the government policies are still effective in curbing prices; and making sure the market is stable.
More on Prices of Private Home Increases in Q4 2020
Meanwhile, private home demand has significantly grown last year amid the travel restriction and partial lockdown. Urban Redevelopment Authority unveiled a report; that shows that in 2020 a total of 20,909 private homes excluding executive condominiums were sold. This private home sale increased by 9.2% (19,150 units) from 2019.
There was also a decrease in the sale of new homes in 2020. The sale of a new home in the Q4 of 2020; recorded a sale of 2,603 units which was a decrease from the 3,791 units sold in the previous quarter. The Senior Vice President of Research and Analytics at OrangeTee & Tie, Christine Sun, commented on this report stating that the pandemic seems to have reversed a decade of rampant growth in the rental market.
Sun, also expects overall prices to increase this year because buyer sentiment is likely to improve further. She expects the new home prices to increase by 5%; and the overall home prices to increase between 1 to 4%. Wong Xian Yang on the other hand, also expects private home prices to increase by 5% in 2021.