Q1 2017: URA & HDB Flash Estimates Price Index
Consistent price fall for private home sales
URA’s Q1 2017 Flash Estimates data shows that prices of private homes in Singapore fell 0.5 per cent quarter-on-quarter (Q-o-Q) at the similar rate as the previous quarter.
“The consistent drop of 0.5 percent in the two quarters signifies the consolidation in the property market. The recent adjustments to cooling measures though not significant, is a great boost in terms of market sentiments. We expect prices to drop by 2% overall, in 2017 as compared to -3.1 per cent in 2016.” said CEO PropNex Realty, Mr Ismail Gafoor.
Core Central Region expected to lead in price softening in 2017
Prices of luxury properties in the CCR fell by 0.2 per cent, and is expected to continue to soften and lead in the overall price drop for 2017. More supply is expected to come on stream in the region with the new Additional Conveyance Duties (ACD) which came into effect on 11 March 2017, this could lead to some price adjustments in CCR.
RCR prices remained unchanged whilst OCR prices registered a 0.1% increase after registering a 0.6% decline in the previous quarter.
Mr Ismail highlighted, “We expect prices in Core Central Region to drop by 3 to 4 per cent in year 2017.”
Public home prices continue to dip
HDB resale prices dipped 0.6 per cent in Q1 2017. This segment is moving towards clear consolidation even though this price drop is the highest in comparison to the last 7 quarters. This drop is insignificant as the first quarter of the year usually witness lesser activities in the market, with lower number of transactions due to the CNY holidays and February being a shorter month.
“2017 will probably see a price movement of about -1 to +1 per cent, with volume exceeding 22,000 units due to the lower asking prices.” Mr Ismail predicted.