SINGAPORE: Private home prices in Singapore rose by 0.9 per cent in the third quarter of 2021 from the previous quarter, according to flash estimates released by the Urban Redevelopment Authority (URA) on Friday (Oct 1).
The private residential property index rose by 1.5 points, from 163.5 points in the second quarter to 165.0 points in the third quarter.
"This represents an increase of 0.9 per cent, compared to the 0.8 per cent increase in the previous quarter," said URA.
Prices of non-landed private residential properties in the Core Central Region fell by 0.6 per cent, compared to the 1.1 per cent increase in the previous quarter.
However, prices in the Rest of Central Region rose by 2.2 per cent, compared to the 0.1 per cent increase recorded in the previous quarter. Prices in the Outside Central Region fell by 0.2 per cent, compared to the 1.9 per cent in the previous quarter.
For landed properties, prices rose 2.5 per cent in the third quarter, after a 0.3 per cent fall in the previous quarter.
This is the sixth consecutive quarterly price increase recorded, said Ms Christine Sun, senior vice president of research and analytics at OrangeTee. On a year-on-year basis, prices rose 7.3 per cent.
Home prices rose at a "modest pace" in the previous quarter as tightened restrictions returned in July and August, said Ms Sun. Resale and mass-market homes also formed a bigger proportion of the total sales in the last quarter.
"These homes are typically sold at lower prices when compared to other market segments, thus lowering the overall average price for the entire market," she added.
Resale transactions accounted for more than half of the transactions in the previous quarter, said Ms Sun, adding that there were more resale transactions than new sales across all three market segments.
"As resale homes formed a higher proportion of transactions last quarter, the overall price index may be ‘pulled down’ by the lower transacted prices," she said.
The market was also impacted by tightened COVID-19 restrictions in July and August, as viewing restrictions were imposed. There were also fewer launches and slower sales activities during the seventh lunar month.
PRICES MAY RISE IN THE FINAL QUARTER: ANALYSTS
According to analysts, private property prices are expected to rise in 2021.
Ms Sun said prices may continue to rise in the final quarter of 2021 as a few luxury projects are slated to be launched in the coming months.
The luxury market may get a boost when more Vaccinated Travel Lanes are set up and foreigners are able to travel to Singapore, said Mr Mark Yip, CEO of Huttons Asia.
Resale homes may also continue to see strong demand, said Ms Sun.
"Some HDB owners who have sold their flats may proceed to upgrade to private housing while others may turn to the secondary market to purchase completed homes due to the construction delays of new ones," she added.
URA's flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up to mid-September.
The statistics will be updated on Oct 22, when URA releases its full set of real estate statistics for the third quarter.
"Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small.
"The public is advised to interpret the flash estimates with caution," said URA.