Prices of private residential properties are down this quarter.
According to the flash estimates of the Urban Redevelopment Authority (URA), prices for private properties in the third quarter of 2016 fell at a sharp 1.5% q-o-q decline. This is a significantly steeper rate compared to the 0.4% decline recorded last quarter.
“From the demand side, there is still much dry power in the market, and many have felt that the private property market has bottomed out,” Edmund Tie & Company research chief Lee Nai Jia said.
More demand is focused in Jurong East due to the area’s growth potential relative the High Speed Rail (HSR) project, the Jurong Innovation District plans, and the establishment of a second business district in Jurong, Jia noted.
For this quarter, there have been declines in property prices all across the board. Non-landed private residential property prices in the Core Central Region (CCR) are down at 1.8% q-o-q. Prices are also down in the Rest of Central Region (RCR) and Outside Central Region (OCR), logging in a 1.3% and 1.2% drop, respectively.
These flash estimates are based on transaction prices from submitted contracts for stamp duty payment as well as figures on unit sales for both licensed and de-licensed projects until mid-September.
Desmomd Sim, head of research for CBRE Singapore and Southeast Asia, said price corrections have reached double-digit declines. This, he said, might kick start the re-exploration of tweaking measures from authorities.
The residential market is expected to prepare for a soft landing by the year’s end, to be followed by a long-term trough.
On the other hand, resale prices of HBD flats remain unchanged. Having remained stable for two straight quarters now, the price constancy of HBD properties is the biggest factor that continues to attract many buyers.
ERA Realty’s key executive officer Eugene Lim explained that buyers with immediate housing needs turn to resale. “Many buyers have been committing to a purchase as prices these days are very reasonable; with most sellers having very realistic price expectations,” Lim said.
A total of 5,090 Build-to-Order flats will be rolled out in Bedok, Bidadari, Kallang/Whampoa, and Punggol on November. Moreover, 5,000 balance flats will also make its way to the market in the same month.