S’pore private home prices rise to 5-year high in Q2

2 July, 2019 12:00 AM printer

SINGAPORE: Private home prices in Singapore bounced to a five-year high in the second quarter after slipping in the prior two quarters in the face of property curbs, underlining the resilience of the country's real estate sector widely seen as a safe haven.

The private residential property index increased 1.3 per cent to 150.5 points in the second quarter, from 148.6 points in the first quarter, according to flash estimates from the Urban Redevelopment Authority (URA). The index was at its highest since the first quarter of 2014, report agencies.

Private home prices had fallen 0.7 per cent in the first quarter, a second consecutive fall, following a 0.1 per cent decrease in the October to December period.

Prices for non-landed private homes saw increases across all regions.

In the Core Central Region (CCR), prices of non-landed private homes increased by 1.5 per cent compared to the 3 per cent decrease in the previous quarter. Prices in the Rest of Central Region (RCR) increased by 3 per cent after registering a decrease of 0.7 per cent in the previous quarter, while prices in the Outside Central Region (OCR) increased by 0.5 per cent following a 0.2 per cent increase in the previous quarter.

In the landed property market, prices rose 0.2 per cent compared to the 1.1 per cent rise in the previous quarter.

The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up until mid-June.

The statistics will be updated on Jul 26 when URA releases its full set of real estate statistics for the second quarter of the year.

"Underlying demand is still very resilient despite the cooling measures," said Ms Christine Li, head of Singapore and Southeast Asia research at Cushman and Wakefield.

Ms Li said the rebound in prices showed that investors remain positive on the long-term prospects of the residential market in Singapore, an international financial hub, despite the uncertainty caused by the US-China trade tensions.