Private residential segment witnessed muted price growth of 0.5 per cent in Q3 2018.
HDB resale segment experienced price decline of 0.2 per cent, expected to round the year off with price index of -1.0 per cent.
Private residential prices reflects muted growth of 0.5 per cent in Q3 2018.
URA’s Q3 2018 flash data shows that prices of private homes in Singapore increased by 0.5 per cent quarter-on-quarter (Q-o-Q), a muted growth compared to the first two quarters of the year.
Chief Executive Officer of PropNex Realty, Mr Ismail Gafoor said, “The subdued growth in private residential price this quarter reflects the immediate effects of cooling measures in July. Prices generally weakened due to sensitive pricing offered at new launches and existing developments (to the tune of 5 per cent). With sensitive pricing that attract home buyers, we expect the year to end with overall price growth of 8 to 9 per cent for 2018.”
“Moving forward, we do not expect prices to tumble because property developers are ‘locked’ by the high land bid costs.” In 2019, Mr Ismail predicted that prices of private residential properties will grow between 2 to 3 per cent.
In Q3 2018, prices of Public Housing experienced a negligible price decline of 0.2 per cent. Mr Ismail commented, “The public housing segment illustrated resilience and consolidation as a segment not hugely affected by the recent cooling measures. HDB resale properties will still be in demand, especially so from en bloc owners considering bigger sized flats as their replacement homes. Moving forward, we expect the whole year to round up with price index at -1.0 per cent. Prices can be expected to take a turn positively in 2019 by 1 to 2 per cent.”