Private property prices rose 3.1% in the first quarter of 2018. A promising start to the year.
3.1% price-hike the steepest increase since 2010
The price-increment last quarter was the steepest since a 5.3% hike in 2010. That was almost 8 years ago. Property analysts consider this a positive sign for the real estate market’s journey to recovery, especially as cooling measures implemented this year do not seem to have caused a much negative impact.
Perhaps it is a fear of further price hikes as the year moves ahead. But buyers are coming out in full force and taking up units in both the primary and secondary markets. Sellers are also taking the opportunity to price upwards, accounting for the rise in figures. Many investors and home seekers have waited for a few years now and are taking action now instead of later.
Property analysts expect transaction volume for private properties to also increase and predict a 5% price-increment within the first half of the year.
Resale HDB flat prices fall further by 0.8%
Prices of resale HDB flats have however gone the other direction. And at a quicker pace too. In Q1, resale prices fell 0.8%, following the 0.2% decline in Q4 of 2017.
For the public housing segment, government policy changes seemed to have had some effect on the resale market. Increased housing grants and shortened waiting times for Build-to-order (BTO) flats have caused a 1.5% fall in resale HDB flat prices last year. Though prices have declined over the past 6 consecutive quarters, the drop of 2.3% over the period of a year and a half is considered slight.
Overall, the property market is on the upswing and new private property launches are expected to have higher price points, which may then turn up the volume for both transaction prices and volume in the months ahead.