Friday, October 28, 2011

Private housing prices continue to moderate

Prices of private residential properties increased by 1.3% in the third quarter of 2011, lower than the 2% rise in the previous quarter.

This was the eighth consecutive quarter in which the rate of increase in overall private housing prices had moderated, according to real estate statistics released on Friday by the Urban Redevelopment Authority (URA).

Prices of non-landed properties in Core Central Region (CCR) - which includes postal districts 9, 10 and 11 -  increased at a slower pace of 0.7% in the third quarter, compared to the 1.6% rise in the previous quarter.

Meanwhile, prices for Rest of Central Region (RCR) and Outside Central Region (OCR) increased by 1.2% and 2.1% respectively in the third quarter.

This is slightly higher than the 1.1% and 1.7% increase in the previous quarter.

Rentals of private residential properties rose by 0.8% in the third quarter, less than the 1.3% increase in the previous quarter.

URA said there was a total supply of 76,255 uncompleted private residential units from projects in the pipeline, as at the end of the third quarter this year.

This supply is higher than the 71,111 units in the previous quarter, and also the highest ever recorded since
such data was first available in 1999.

Meanwhile, the total stock of completed Executive Condominium (EC) units remained unchanged at 10,430 units as at the end of the third quarter.

In addition,there were 5,332 EC units in the pipeline.

URA added that another 1,115 EC units could come from the EC sites that have been released for sale via the 2nd Half 2011 government land sales (GLS) Programme.
Source: Channel News Asia

The wife and I are rather amazed by how the slower pace of price rise in the prime districts of 9, 10 & 11 more than offset the higher price increase for the rest of Singapore. This is dispite the fact that the bulk of the sales continue to be mass-market homes in the suburban areas. It just goes to show the huge price disparity between private properties in the prime districts versus the rest.



Anonymous said...

Prices continue to moderate. Does it mean that prices will not RISE AS FAST?..... that is the question. We need economic crystal ball.

Anonymous said...

Can see three markets emerging...if we can classify them as thus.

Those applying for HDB and buying resale flats (pent up / latent demand).

Then there are mass market condominiums for those who aspire to private ownership (HDB upgraders / those who bust the income ceiling - still there is demand from locals, provided no widespread retrenchments).

Lastly, prime district / luxury market (flat demand, probably some foreigners).

Post a Comment