In a complete turnaround from the decreases in the price index over the last four quarters, URA’s price index flash estimate for the third quarter in 2009 shows a promising recovery taking place. The estimated 154.5 is a relatively whopping 15.9% increase over the second quarter’s 133.3.
PropNex CEO Mohamed Ismail explains that this reflects the boosted market confidence of late, which was seen in the last few months’ brisk sales for private properties.
“This feverish activity in a runaway market,” continues Mr Ismail, “was fuelled by many investors and HDB upgraders who were afraid of losing out on a good investment opportunity. Hence, I am not surprised to see that the market has rebounded so strongly.”
In forecasting what the private property market holds, Mr Ismail refers to two defining factors: the recent announcement of IAS removal and the Government’s reassurance of more land being released.
“Not only will the first factor lead to more sensible pricing by developers for new launches,” explains Mr Ismail, “but both these measures will eventually translate to more sustainable growth in the long term, preventing a bubble from forming.”
He defines sustainable growth as between 2–3%, and expects the price index to maintain those levels over the next four quarters
For enquiries, please contact:
Mohamed Ismail (CEO) 9487 1414
Adam Tan (Corporate Communications Manager) 9006 8726