S'pore housing market slows down
By Romesh Navaratnarajah: Singapore's residential property market performed weakly in Q3 2012, with the sales volume falling 11.7 and 26.7 percent in the primary and secondary markets respectively.
According to a report from Jones Lang LaSalle (JLL), home sales in the prime market dropped 22 percent quarter-on-quarter with only 712 units sold last quarter, based on estimates from the Urban Redevelopment Authority (URA).
Moreover, the sub-sale volume declined 16.3 percent quarter-on-quarter. Leasing demand also dipped as tenants sought less expensive units in prime districts and other areas where rents are comparably lower. Rents for luxury prime units slipped by 0.2 percent to S$524 psm per annum as tenants moved to typical prime units. A rise in the number of lease terminations by companies and growth in leasing activity among expatriates impacted the rental market, the report added.
In terms of supply, new projects completed in Q3 fell 44 percent to 438 units compared with 778 completed in the previous quarter.
Meanwhile, the US government's third round of quantitative easing (QE3) will likely create a further period of low interest rates and more market liquidity, pushing an increase in capital values moving forward. Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@allproperty.com.sg Related Stories: Hao Yuan wins Pasir Ris EC tender
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