Singapore Property | Singapore has experienced a rise in private homes overall prices for the first time after almost 4 years after a rise by 0.7% in Q3 2017 in comparison to a drop of 0.1% recorded in the second quarter, according to Urban Redevelopment Authority (URA) latest statistics.
Non-landed properties had a 0.6% rise in prices in Q3 2017 compared to the 0.1% slide recorded in Q2. Landed homes gained 1.2% in the quarter from the 0.3% drop recorded in the previous quarter. You can view some of the landed properties by visiting Belgravia Villas, Nim Collection or the Morris Residences.
In the Outside Central Region (OCR), non-landed homes had the highest rise of 0.8% from the 0.3% drop recorded in Q2.
While Q3 records slower private residential market because of the Chinese 7th month, the rise in prices indicates a bottomed out market,” said Dr. Lee Nai Jia, Research Head Edmund Tie & Co.
Rent did not rise across the city-state in Q3 as compared to a fall of 0.2% recorded in Q2.
The rent for non-landed properties reduced by 0.1% in Q3 2017 in comparison to a fall of 0.2% in Q2. Rent for landed properties rose by 0.6% from a slide of 0.1% in Q2.
The largest rise in rent was for the non-landed properties in RCR of 0.9% versus a drop of 0.4% in the second quarter.
However, rent in OCR fell by 0.3% amid another drop of 0.6% in Q2 while in CCR rent declined by 0.8% versus a decline of 0.1% in the previous quarter.
Ong Teck Hui, the National Director for Research, JLL said that this is an indication that the rental market is starting to bottom. However, the quarter had a high vacancy at 8.4% in comparison to 8.1% in Q2.
“Some homeowners have stopped leasing their properties due to the rise in home prices. This may have led to the positive impact on rent due to tenants having reduced leasing options,” said Ong.
Excluding ECs, there were 1,183 units launched in Q3 2017, a drop from 2,011 units launched in Q2. Private homes sales also dropped to 2,663 units from 3,077 in Q2.
Ong noted that the rise in the sales of private homes for both primary and secondary market of 56.8% y-o-y to 18,800 units in 9 months was the highest in 5 years.
Ong is of the opinion that buyers may go to the resale market since developers are holding back launches in the midst of recovering home prices.
Dr. Lee of Edmund Tie & Co believes that the private housing sector in Singapore may continue to rebound except if there policy changes or external shocks that may interfere the market.