Singapore Property | Based on the most recent URA’s flash estimates, private residential properties registered a 0.6 percent quarter-to-quarter dip in price index in the first quarter of 2019 compared to a quarter-to-quarter drop of 0.1 percent in fourth quarter of 2018.
Following the two consecutive quarters of price drops, prices of private residences are now 0.7 percent less than the last peak in the third quarter of 2018 and 3.8 percent less than the highest peak ever in quarter 3 of 2018, says Tricia Song, who works at Colliers International as the Singapore’s head of research.
“Cynical feeling in the residential market has a high likelihood of continuing and may prevent price-conscious buyers from making early committal with the expectation of a further decline in prices in the subsequent quarters,” points out Christie Li of Cushman & Wakefield.
Non-landed private residences within the Core Central Region (CCR) recorded a 2.9 percent q-o-q drop in the price index compared to the 1 percent drop registered in the previous quarter. This is undoubtedly the highest quarterly price drop for the section since a 5.2 percent quarter-to-quarter decrease in quarter 2 of 2009 after the Great Financial Crisis. According to Song, CCR’s prices have currently dropped by 3.9 percent compared to their last peak in the third quarter of 2018.
Li says that the drop could be due to standardisation of the segment’s post-en bloc sales. “In the most recent en bloc sales boom, many en bloc investors could be creating a premium effect on the en bloc seekers. But the premium effect goes away immediately the en bloc sales come to an end.” Another possible cause of prices drop in CCR during the quarter could be due to a decrease in average prices for some projects as developers focus on clearing inventory. Examples of such projects include Marina One Residences, New Futura, TwentyOne Angullia Park and Martin Modern.