Singapore Property | Compared to a 3.9 percent growth during the 1st quarter of the year, Singapore private home prices experienced a much more modest growth rate at 3.4 percent during Q2. This is according to recent data released on July 27 by URA or the Urban Redevelopment Authority.
Furthermore, according to CBRE’s research head, Desmond Sim, the URA residential price index has experienced its fourth straight quarter of growth. Combined with the rates since Q2 2017, the growth has been accounted to 9.1 percent with a year-to-date recovery of 7.4 percent.
Responsible for the price increase are the 3.0 increase in the Outside Central Region as well as the 5.6 percent hike in Rest of Central Region (RCR) primarily due to the high demand in the said regions.
Furthermore, private home sales are also seeing good numbers with 2,366 sold units and 2,437 launched uncompleted private homes in the period.
However, as Sim mentioned, although the number of units sold is astounding and the highest in the also five quarters, unsold units are also at a high with demands in other areas lagging behind the supply.
According to URA, around 19,500 units including those of ECs are included in the potential supply pipeline as of June 30 – all of which are still waiting for approval. Part of these units are the 8,400 coming from the awarded Government Land Sales or GLS as well as the 11,000 units from collective sales which include bloc sites.
These units are expected to be out in the market by 2019 with completions from 2021 onwards. Sim noted however that supplies from en bloc sites might not be that simply predicted due to the complex sale process and pressures from recent curbs.
On the other hand, URA’s rental index saw a quarter-to-quarter rise of 1.0 percent in Q2 which is 3.9 percent higher if seen at an annual basis. Vacancy rates also saw an increase from 7.1 to 7.4 percent.