SINGAPORE: The Urban Redevelopment Authority (URA) has unveiled its preliminary estimate on the price trajectory for private residential properties in the 3rd Quarter of 2023.
In this estimate, the price index for private residences experienced a modest uptick of 0.5% on a quarter-to-quarter basis, in contrast to a 0.2% dip observed in Q2 2023. Notably, the rate of this increase is markedly below the average quarterly ascent of 2.1% reported throughout 2022.
Furthermore, the sales volume for private residential properties dipped considerably, registering a 15% drop compared to the last quarter and a 26% slump year-on-year.
Segmenting the property types, landed properties witnessed a slide in prices by 4.9%, overturning the 1.1% hike from the previous quarter. Conversely, non-landed properties saw their prices buoyed by 2.1%, bouncing back from a 0.6% decrement in the quarter prior.
This resurgence in the non-landed sector was largely spurred by sustained demand in the Rest of Central Region (RCR) and Outside Central Region (OCR), even as prices in the Core Central Region (CCR) experienced a downturn.
While these flash estimates serve as an early indicator, URA stresses prudence in their interpretation. The authority highlighted that when the magnitude of change is minimal, discrepancies between the flash estimates and the final figures can be pronounced.
Private residential market nearing peak: PropertyGuru
Elaborating on URA’s flash estimates, Dr Tan Tee Khoon, the Country Manager for Singapore at PropertyGuru, posits that the private residential market may be exhibiting signs of reaching its zenith.
He ascribes the 2.3% surge in non-landed private property prices in the RCR to the stellar performance of Grand Dunman, which emerged as the standout new condo launch this year.
This development managed to transact over half of its units, averaging at a price of $2,500 per sq ft during its inaugural sales weekend.
The OCR, on the other hand, recorded the most pronounced growth in prices for non-landed private properties, registering an impressive 5.1% leap in Q3 2023. This growth momentum can largely be attributed to the preponderance of major new condo launches situated within this region.
However, Dr Tan discerned two evolving patterns casting a shadow on the market’s vibrancy: a dwindling pool of first-time homebuyers and the adjusted Additional Buyer’s Stamp Duty (ABSD) rates rolled out in the April 2023 property cooling measures.
These trends, in tandem with looming economic uncertainties and the spectre of rising interest rates, signify an impending moderation in private residential property prices.
The market outlook seems especially tentative for properties that aren’t strategically situated near renowned schools, MRT hubs, or within well-established neighbourhood enclaves.
A comprehensive set of real estate statistics, offering a deeper dive into the market, is slated for release by URA on 27 October 2023.
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