SINGAPORE: Continuing an upward trend in the property market, private home prices in Singapore rose 3.1 per cent in the first quarter of 2018, according to flash estimates released on Monday (Apr 2) by the Urban Redevelopment Authority (URA).
The rise is compared to the 0.8 per cent increase in the previous quarter.
Overall, the private residential property index increased 4.3 points from 138.7 points in 4th quarter 2017 to 143.0 points in 1st quarter 2018.
Prices of non-landed private residential properties increased by 5.0 per cent in Core Central Region (CCR), compared to the 1.4 per cent increase in the previous quarter, URA said.
Prices in the Rest of Central Region (RCR) increased by 1.1 per cent, after registering an increase of 0.4 per cent in the previous quarter, while those in Outside Central Region (OCR) increased by 3.8 per cent, after registering a 0.8 per cent increase in the previous quarter.
"Moving into 2018, we can feel that buyers and investors are now taking action, propelled by the ongoing market exuberance with the bullish land bids and continuous collective sales in the market," said Propnex Realty CEO Ismail Gafoor.
"As expected, the year started off with a record 3.1 per cent growth. With price appreciation expected to continue this year, we predict that not only will transaction volumes pick up, prices are set to increase by up to 5 per cent as well by the first half of the year."
He added: "Overall, 2018 will witness a price growth of 8 per cent to 10 per cent, mainly contributed by higher price points at new launches, which will in turn bring up the overall selling prices of the resale and existing launches moving forward."
Ms Tricia Song, Head of Research at Colliers International, said: "We now project average private home prices to rise by 8 per cent (from the 5 per cent forecast earlier) for the full year of 2018, implying a rise of another 5 per cent for the rest of the year.
"We think the rise is front-loaded due to the pent-up demand and buyers’ fear of missing out on good value buys as prices trend up."
She added: "We remain positive on the fundamentals of the Singapore economy and are hopeful of a sustainable gradual property price growth in tandem with the GDP growth. Developers will also be mindful that the softer HDB resale prices may affect the ability of upgraders to purchase more expensive private homes."