Private residential prices experienced a tepid price decline of 0.1 per cent in Q4 2018.
The URA’s 4th quarter Private Residential Price Index reflected a drop of 0.1% quarter-on-quarter (Q-o-Q).
Chief Executive Officer of PropNex Realty, Mr Ismail Gafoor remarked that “The implications of the property cooling measures continued into the 4th quarter with a -0.1% drop in the property price index. However, in order to better gauge the price movements in 2018, the private residential market can be broken down into two halves in 2018. With the first half of the year being, the pre-cooling measures period, which saw a 7.3% price increase for the combined quarters. Whereas, in the second half of 2018, the post-cooling measures period, the price index showed a change of 0.5% and -0.1% in the 3rd and 4th quarter respectively. This is a clear indication of the private property market, reacting to the cooling measures and the sensitive pricing adopted by the developers which have effectively ensured that there are no runaway prices attained.”
Mr. Ismail concluded that “Going forward, in 2019, the full year will be subjected to the aftermath of the property cooling measures as opposed to 2018, whereby only the second half of the year, endured the effects. As the property market gradually consolidates to its new price points, we are expecting an overall growth of 1 to 2% in 2019 as a result of varying factors such as en bloc sales, higher land bids and the adoption of sensitive pricing by developers.”
The HDB resale market recorded a slowdown in the resale price index, with -0.2% dip in the 4th quarter. Mr. Ismail highlighted that “The HDB resale market underwent lukewarm changes in prices in the 4th quarter. However, Sustained demand continued from displaced owners of collective sales. As more En Bloc sellers who are looking for replacement homes are entering the HDB resale market. We can expect prices to potentially reach to around a 1 to 2% increment in the 2019.”