SINGAPORE: The rise of private property prices in Singapore slowed significantly in the third quarter, after the Government announced measures to cool the red-hot market, data released by the Urban Redevelopment Authority (URA) on Friday (Oct 26) showed.
Private home prices rose 0.5 per cent in the July to September period, down from the 3.4 per cent rise in the second quarter and 3.9 per cent rise in the first quarter.
Prices of landed properties rose by 2.3 per cent in the third quarter, down from the 4.1 per cent increase in the previous quarter. Prices of non-landed properties remained unchanged, compared with the 3.2 per cent increase in the previous quarter.
In the Core Central Region (CCR), prices of non-landed properties rose 1.3 per cent. In the Rest of Central Region (RCR), prices fell 1.3 per cent, while in the Outside Central Region (OCR), prices fell 0.1 per cent.
Ms Christine Li, senior director of research at Cushman & Wakefield, said that she expects price growth to continue, albeit at a much slower pace.
"Though the new cooling measures had a substantial impact on demand, it is not as bad as the period when Total Debt Servicing Ratio was implemented," she said.
"This shows that demand remains resilient and many are still positive on the long term prospects of real estate investment in the Singapore private residential market," she added.
Developers launched 3,754 uncompleted private homes in the third quarter, up from 2,437 units in the second quarter. They sold 3,012 homes, up from 2,366 in the previous quarter.
No Executive Condominium units were launched for sale, but developers sold 84 units from previous launches.
A total of 2,672 private homes exchanged hands in the resale market, a sharp decline from the 4,700 transactions in the second quarter. Resale transactions accounted for 46.3 per cent of all private property sales, down from 65.4 per cent in the previous quarter.
Rentals of private homes rose marginally by 0.3 per cent in the third quarter, with rentals of landed properties rising 0.5 per cent and non-landed properties rising 0.3 per cent.
PropNex Realty CEO Ismail Gafoor said that the overall volume of private home sales in the third quarter is "encouraging" despite the cooling measures.
However, he also noted that the numbers were largely attributed to the surge of uncompleted new homes sales as buyers rushed to buy units on the eve of the cooling measures in July.
"Generally, an immediate reaction to any cooling measures would be a ‘wait-and-see’ attitude from buyers and investors. However, for new launches we saw healthy take-up rates as developers reacted quickly with sensitive pricing to entice buyers," he said.
"On the other hand, in the resale market, sellers held on to their prices and buyers were not as forthcoming in the take-up of the resale properties,” he added.