S’pore private property prices increase by 0.8pc in Q3

25 October, 2020 12:00 AM printer

SINGAPORE: Private home prices in Singapore in the third quarter rose 0.8 per cent from the previous quarter, while demand surged for both new developer units and resale properties, in what analysts said is a sign that consumer confidence is “steadily returning” amid the COVID-19 pandemic.

The private residential property price index increased to 153.8 points in the third quarter, up from 152.6 points in the first quarter, according to real estate statistics released by the Urban Redevelopment Authority (URA) on Friday. This is unchanged from the flash estimates released earlier this month, report agencies.

It is also an increase from the 0.3 per cent rise in the second quarter. Rentals of private residential properties fell 0.5 per cent, extending a 1.2 per cent decline in the previous quarter.

“Although the pandemic has ravaged economies worldwide and severely affected businesses in many sectors, the skies seem brighter for Singapore’s property sector that saw a surge of buyer interest and an uptick in sales volume,” said Ms Christine Sun, head of research and consultancy at OrangeTee & Tie. “Investors were scouring for gems in the market while owner-occupiers were snapping up ‘star-buy’ units released by property developers,” she added.

The price increase in the third quarter was boosted by a 3.7 per cent spike in the landed segment, compared with a 0.1 increase in the non-landed segment. Prices of non-landed private residential properties in the Core Central Region fell by 3.8 per cent, compared with a 2.7 per cent increase in the previous quarter. In the Rest of Central Region, prices of non-landed properties rose 2.5 per cent after a 1.7 per cent decrease last quarter. Prices in the Outside Central Region rose by 1.7 per cent after a 0.1 per cent increase in the previous quarter.

“Buyers from Q4 2020 will be continually price sensitive but increasingly more decisive, as Singapore is excitingly entering into Phase Three (possibly by end-2020), reflecting potential economic stabilisation and opportunities for longer-term price appreciation,” said property analyst Ong Kah Seng.