Singapore Property | In the first quarter of the year 2018, there was a rise in the prices of private homes from an increase of 0.8 percent observed in the prior quarter. This is according to the flash estimates announced on Monday, 2nd April by the URA or Urban Redevelopment Authority.
According to Tricia Song, who plays the role of Colliers international research head on behalf of Singapore, this showed the third straight quarter of growth in price ever since the index of private residential properties bottomed in the Q2 of 2017.
With this, there was a 4.6 percent gain on the index on an annual basis, and since its rice in Q3 2013, private homes are now at 7.5 percent.
The hike, which was higher than expected in Q1, was as a result of the recovery in home values, which were broad based across all sectors. This was the case especially for the prices of private homes in the CCR or the core central Region which were not land-based. The saw the largest jump of 5.0 percent after experiencing a hike of 1.4 percent; which was observed in the past quarter.
Song stated that this was indulged by the new launches in the year 2017 that recorded increased prices. For example, the Gramercy Park’s transacted median prices rose 9.5 percent from $2,902 psf in the 2017 Q4 to a price of $3,177 psf in the Q1 of 2012, while there was a 14.8 percent increase in the Martin Modern from a price of $2,354 psf to $2,703 psf.
Tech Hui, who is the national director for research and consultancy at JJL, stated that the prices at The Interlace and Reflections at Keppel Bay increased by 11.8 percent and 5.7 respectively in the early quarter.
Another factor which has encouraged the rise in prices is the high rate of lands from the recent collective sales like Holland Road, River Valley, and Bukit Timah, stated song.
In the OCR or Outside Central Region, the flash estimate by URA shows that there was a rise of 3.8 percent in prices after a prior increase of 0.8 percent. Sales in this region accounted for around 50 percent of the overall transactions under review in the quarter, as noted by Ong, while the RCR and CCR made 31 percent and 18 percent respectively.