2019’s private home growth slower than year before

According to data from the Urban Redevelopment Authority (URA), home prices rose in 2019 but at only 2.5%, compared to 2018’s 7.9%.

2019’s Q4 flash estimate shows a minimal increase in home prices

Last quarter’s flash estimates revealed a much slower growth of only 0.3% in the private homes sector. The market fared slightly better in Q3 with a 1.3% increase from Q2. Q4’s reduced growth could also be attributed to the usual year-end lull and the lack of new private property launches.

Landed homes led the way with prices here rising 4%, following a 1% growth in Q3. The number of landed homes sold has remained stable since Q2 and analysts believe that this indicates a strong demand for these property types.

Non-landed home prices, however, fell 0.7% last quarter after a 1.3% rise in Q3. Prices of private non-landed residential homes in the core central area fell the hardest with a decline of 3.7%. The inventory of unsold units in this region could have played a part in slowing the growth. The number of unsold units in the core central region from projects previously launched tripled in a span of 3 months between Q2 and Q3. There were also very few launches of high-end projects in the region last quarter. Some properties, however, continued to sell well.

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Marina One Residence. Picture: iProperty

Marina One Residence. Picture: iProperty

At Marina One Residences, for example, 43 units were sold at a median price of $2,242 psf last quarter; compared to the 30 units sold at an average of $2,503 psf in Q3.

Resale HDB flat prices climbed for 2 consecutive quarters

Resale HDB flat owners may have more to cheer about as prices have been climbing for 2 consecutive quarters now. Some analysts have attributed the continued increments to the policy changes which were in force since last September. The Enhanced Central Provident Fund Grant (EHG) and raised income ceilings could be some of the reasons for renewed interest in resale flats, in particular, older units.

Artist impression of The Midwood Condo.

Artist impression of The Midwood Condo.

Suburban private homes held their own with a 2.9% rise in price last quarter, following a 0.8% increase in Q3. Take-up rates at previously-launched projects such as Treasure at Tampines and The Florence Residences continued at a steady pace. At newer launches such as Sengkang Grand Residences, Dairy Farm Residences and Midwood, all sold well with 235 units, 36 units and 22 units sold at median prices of $1,741 psf, $1,553 psf and $1,646 psf respectively.