Singapore Property | The URA flash projections reveal that the price index of private residencies dropped by 0.1 percent in the fourth quarter of 2018 after rising by 0.5 percent in the third quarter of 2018. The prices rose by 7.9 percent and 1.1 percent in 2017 and 2018 respectively. According to OrangeTee & Tie’s research head, Christine Sun, this marks the first quarterly drop since the second quarter of 2017. She adds that the new property cooling measures coupled with international expansion distresses amidst increasing trading and financial risks have negatively affected the private residential market throughout the period in review.
Non-landed private residences registered a price decline of 1.5 percent in the last quarter after increasing by 1.3 percent in the third quarter of 2018. Rest of Central Region (RCR) recorded a price increase of 1.8 percent while prices in the Outside Central Region (OCR) rose by 0.8 percent, following decreases of 1.3 percent of RCR and 0.1 percent for OCR in the third quarter of 2018.
CCR, RCR, and OCR registered overall price increase of 6.2 percent, 7.4 percent, and 9.5 percent in that order. New launches like Whistler Grand, Parc Esta and Kent Hill Residences may have led to a rise in prices in the RCR as well as OCR. On the contrary, the transactions from fresh launches in the CCR section were insufficient to increase prices, points out Tan Tee Khoon, who works at Knight Frank Singapore as the marketing head of the residential project.
The price indexes of CCR, RCR, and OCR have also relapsed or surpassed the pre-measure levels in the second quarter of 2018. Sun says, “This is a sign of price stabilization, just five months after the enforcement of the property cooling measures.” However, present market conditions will potential disadvantage the group of prospective buyers “to those with strong financial muscles and first-time homeowners,” she adds.
According to Huttons Asia’s research head, Mr. Lee Sze Teck, the market this year will avail many options to buyers because new launches could be between 9,500 and 11,000 units. He approximates that 20 percent of the units are found in the CCE, 30 percent within the RCR and the remaining 50 percent in the OCR. Some of the upcoming projects range from RV Altitude, 35 Gilstead, Fourth Avenue Residences, to Fyve Derbyshire.