Prices of private homes rose 2.7% last year while the number of transactions dipped, according to the latest numbers from the Urban Redevelopment Authority (URA).
2.7% increase in private home prices in 2019
Overall, the private homes market fared well last year. There was however a significant decline of 13.5% in the number of private residential properties sold last year. 19,150 private homes were sold in 2019 with the number of new homes sold by developers increasing by 12.7% to 9,912 units (excluding executive condominiums or ECs).
The number of resale transactions remained mainly stable in Q4 in comparison with the previous quarter with a decrease of only about 1.5% from 2,378 to 2,342 units. In comparison with the year before when the increase was 7.9%, last year’s numbers may have been a little lackluster.
The number of resale private homes sold last year accounted for about 48% of the private homes sold in the last quarter of 2019. 8,949 resale private homes exchanged hands last year. In comparison with the 13,008 units sold in 2018, there was a considerable decline in transaction volume of 31.2%.
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New home sales expected to remain steady in 2020
Artist impression of The Midwood Condo.
Although last year’s increase in home prices was not as much as the year before, the market performed fairly well, especially in light of the property cooling measures rolled out in July 2018. The decrease in transaction volume could also be attributed to the fading collective sales fever of the previous years. There will also be a large supply of new homes hitting the market soon and this could mean increased market competition in the months ahead. Some analysts are expecting the oversupply situation to only begin to stabilize in 2021.
The economy is expected to improve this year, though the Wuhan virus may have put a spanner in the works as travel may be restricted and that could also dampen visits to show flats. In turn, negative sentiments could also affect sale prices and volume.
