The latest release of quarterly figures from the Urban Redevelopment Authority (URA) showed that prices of private residential rose by 5.6% in the last quarter. Showing signs of stabilising, it compares with the 7.4% increase in the previous quarter.

Prices of non-landed properties went up by 4.9% in Q1 2010, compared with the 7.2% increase in the previous quarter. Prices of apartments gained 3.6%, while prices of condominiums increased by 5.7%.

With a stronger showing, prices of landed properties increased by 8.3% in Q1 2010, the same percentage as in the previous quarter. Prices of detached, semi-detached and terrace houses increased by 9.6%, 7.5% and 7.4% respectively in Q1 2010.

Li Hiaw Ho, Executive Director, CBRE Research commented,” URA statistics for Q1 2010 showed that 4,380 new homes were sold, an improvement of 1.35 times from the 1,860 new homes sold in the previous quarter. The strong take-up could be attributed to the economy doing better than expected, the low interest rate environment, more new homes being launched and some degree of pent-up demand after a slower Q4 2009. In addition, there was a push factor from an anticipation of a hike in home prices going forward as developers were paying higher prices for the development sites acquired. Developers launched 4,372 new homes for sale in Q1 2010, nearly double that of the 2,227 units launched in the previous quarter.”

He noted that not only was the primary market active, the resale market also registered a total of 4,261 units having changed hands. “This is 6.5% higher than the 4,001 resale homes sold in the previous quarter,” he said.

Li added,” Speculative activity, as indicated by sub-sales volume, appeared to be under control after the two rounds of government measures introduced in October 2009 and February 2010. 806 sub-sales were registered in Q1 2010, representing 8.5% of the total sales volume in Q1 2010. This is the first time the proportion of sub-sales fell below 10% since Q1 2007.” 

Similarly, rentals of private residential properties gained 4.7% in Q1 2010, compared with the 0.6% increase in the previous quarter.