Private property prices rise 2.7% last year, led by landed homes

Private property prices rise 2.7% last year, led by landed homes

Private apartment blocks - file photo
Private property in Singapore (File photo: Gaya Chandramohan)

SINGAPORE: Private home prices in Singapore rose 2.7 per cent last year, led by the landed property segment, data from the Urban Redevelopment Authority (URA) showed on Thursday (Jan 23).

The figure beat an initial estimate of 2.5 per cent, but the pace of growth slowed compared to 2018, when prices of private homes spiked by 7.9 per cent.

Prices of landed homes increased 5.7 per cent, while those of non-landed properties rose by 1.9 per cent.

Overall, private home prices rose for three out of the last four quarters, inching up 0.5 per cent in the October to December period.

URA graphic Jan 23, 2019

In the fourth quarter, landed property prices rose by 3.6 per cent compared with a 1 per cent increase in the previous quarter. In the non-landed segment, prices were down 0.3 per cent, reversing the 1.3 per cent increase in the previous quarter.

Those in the Core Central Region (CCR) fell the most by 2.8 per cent, while those in the Rest of Central Region (RCR) fell by 1.3 per cent. However, those in the Outside Central Region (OCR) increased by 2.8 per cent.

RENTALS UP 1.4%

Rentals of private homes rose 1.4 per cent last year, compared with a 0.6 per cent increase in 2018, led by an increase in rentals of non-landed properties.

In the fourth quarter, rentals were down by 1 per cent, compared with a 0.1 per cent increase in the previous quarter.

Both segments saw quarter-on-quarter decreases, with rentals of landed properties decreasing by 1.6 per cent, while rentals of non-landed properties decreased by 0.9 per cent.

MORE NEW UNITS LAUNCHED

For the whole of 2019, developers launched 11,345 uncompleted homes, compared with 8,769 units in the previous year.

They sold 9,912 homes in the year, compared with 8,795 in 2018.

Between October and December last year, 2,226 uncompleted private homes – excluding Executive Condominiums (ECs) – were launched for sale, compared with 3,628 units in the previous quarter. The bulk of the new launches were in the OCR region.

A total of 2,443 units, excluding ECs, were sold, down from the 3,281 units in the previous quarter. 

Homes in the suburbs proved the most popular with buyers, who purchased 1,123 units in the OCR region.

URA graphic Jan 23, 2019 (1)

In the secondary market, 8,949 homes were sold last year, compared with the 13,009 resale transactions in 2018.

There were 2,342 resale transactions in the fourth quarter, compared with the 2,378 units in the previous quarter.

Resale transactions accounted for 48 per cent of all sale transactions between October and December, compared with 41.3 per cent in the previous quarter.

IN THE PIPELINE

As of end-December, there were 49,173 uncompleted private homes and 3,192 ECs in the pipeline with planning approvals. Of these, 32,272 units remained unsold.

Based on the expected completion dates reported by developers, 6,922 units (including ECs) will be completed in 2020. Another 10,579 units (including ECs) will be completed in 2021.

Source: CNA/nc(cy)

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