Affected by the aftershocks of continuing economic hard times around the world and particularly in Western Europe, as well as cooling measures from the government authorities, private home prices in Singapore have shown a slower pace of growth.
(Singapore property growth is slowing.Image courtesy of thinkstock)
For the eight consecutive quarter since the final quarter of 2009, private residential property prices have continued to moderate, says a recent flash estimate of the property index by the URA (Urban Redevelopment Authority). Their findings show that the index for the third quarter 2011 rose by 1.3%, compared to a 2% increase in the previous quarter.
Furthermore, non-landed private residential properties showed an increase of 0.8% in the Core Central Region, 1.1% in the Rest of Central Region and 2.1% Outside the Central Region in this quarter. In the previous quarter of this year, non-landed private residential properties increased in price by 1.6% (Core Central Region), 1.1% (Rest of Central Region) and 1.7% (Outside Central Region).
These estimates, however, are to be interpreted carefully, cautions the URA. The information was compiled based on transaction prices given in caveats lodged in the first ten weeks of the quarter, supplemented by information on the number of new units sold. A full update will be released in four weeks when the complete third quarter real estate statistics. The URA’s release also adds that, based on similar projections made in the past, “the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small.”
In a bid to minimise the risk of a property price bubble, Singapore regulators have taken precautions such as increasing the amount of available land and reducing the amount buyers can borrow for second properties. As the world economy continues to suffer destabilising shocks, private home buyers in Asia may become more cautious.
The public property market, on the other hand, has been harder to curb. Earlier this week, the Housing Development Board (HDB) released figures detailing a rise in the resale price index. Since the last quarter, prices increased by 3.8%, its highest rise this year. The first quarter of 2011 saw the HDB price index growing by 1.6%, followed by 3.1% in the second quarter.
These figures are partly a result of measures put in place in January of this year which have created a dip in the public housing supply, including a five-year minimum occupation period for HDB tenants and a lowered 60% loan-to-value ratio.
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Related Categories: Issues & Challenges, Market Reports
Tags: central region, HDB, Home, price bubble, private, public, Real Estate, Singapore property prices, third quarter, URA
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