Private home prices down for 14th consecutive quarter

Prices of private residential properties fell 0.4 percent in Q1 2017, following a 0.5 percent drop in the previous quarter, according to URA data...

Prices of landed properties registered the largest decline of 1.8 percent in Q1 2017. 

Prices of private residential properties fell 0.4 percent in Q1 2017, following a 0.5 percent drop in the previous quarter, according to data released on Friday (28 April) by the Urban Redevelopment Authority. This is the 14th consecutive quarter of overall price decline.

Prices of non-landed properties remained unchanged, after falling 0.8 percent in Q4 2016.

Specifically, prices in the Core Central Region (CCR) declined 0.4 percent, compared with the previous 0.1 percent increase.

In the Rest of Central Region (RCR) and Outside Central Region (OCR), prices rose 0.3 percent and 0.1 percent, compared with the 2.0 percent and 0.6 percent decrease in the previous quarter, respectively.

Dr Lee Nai Jia, Head (SEA) Research at Edmund Tie & Co., said home prices in the RCR and OCR were boosted by strong take-up rates at new launches.

“For instance, Park Place Residences at PLQ, with a median price of $1,805 psf in Q1, sold 217 units out of 429 units in the project. Grandeur Park Residences also sold around 67 percent, or 236 units, at $1,406 psf,” said Lee, who expects prices to remain largely stable this year.

Meanwhile, prices of landed properties registered the largest decline of 1.8 percent, after rising 0.8 percent in the quarter before.

Said Lee: “The decline in price index may reflect only transactions of sellers in a weaker bargaining position. The values of freehold landed homes, especially those that are well-maintained, close to natural amenities like the seaside or hills, or in choice locations, are more resilient.”

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg