The Private home price index experienced a price dip of 0.6% in Q1 2019.
The HDB resale market reflected a price decline of 0.3% in the 1Q 2019.
The URA’s 1st quarter Private Residential Price Index indicated a decline of 0.6% quarter-on-quarter (Q-o-Q).
Chief Executive Officer of PropNex Realty, Mr Ismail Gafoor stated that “Under the current market conditions, developers have been strategically pricing their projects, sensitively at a lower price point. Thus, serving as a driving force for the overall price decrease of the private properties in the first quarter of this year. However, the cooling measures have been effective in its implementation, through curtailing runaway prices and minimizing probable anomalies.”
Mr. Ismail further remarked that “We are expecting that the market will remain relatively quiet, as more supply are beginning to come on stream in the form of new launches and unsold units. Hence, we are expecting prices for private properties to remain flat for the rest of the year.”
The HDB resale market recorded a drop in the resale price index, with -0.3% dip in the 1st quarter of this year. Mr. Ismail mentioned that “The HDB resale market displayed signs of resiliency as compared to the same time period last year, with prices holding at current level. This is primarily due to the overall demand of 23,099 resale transactions last year, reflecting rising growth for public housing. An increase of 4.7% (Y-o-Y) from 2017 to 2018. We will witness a continuous stream of supply potentially entering the market, as a result of an estimated 30,000 HDB flats (comprising HDB and DBSS flats) reaching MOP this year. Therefore, with the maturity of MOP flats adding on to the supply, we are anticipating prices of public housing to hold at a marginal increase of 1% for the entire year of 2019.”