Sales figures and sentiments in the private home sales market are likely to continue in an upwards trajectory this year.
Rise in both sale prices and transactions. Rents to follow suit
Last year, there was a 1.1% rise in private home prices and a 53% rise in the number of transactions to a more-than-promising 25,010 units. Prices have fallen in the 3 years prior, with a glimmer of hope beginning to shine through only in 2016 with a 16% rise in transactions despite a 3.1% drop in prices.
Non-landed properties were the front runners of the change, learning the price rebound by 1.3% in 2017. The Core Central Region (CCR) or prime districts showed a 1.4% price-rise in Q4 last year. The strongest showing of the year came from the 1.8% rise in the city fringes and Rest of Central Region (RCR).
While rental prices did not follow suit, the vacancy rate has decreased. Analysts consider that a positive sign and this year might be a turnaround period for this market segment. Rents fell 1.9% last year but it is still less steep than the 4% fall from 2016.
New launches and pent-up demand part of the reason for steady rise
10,000 new housing units are expected to reach completion this year, fewer than the average of 17,000 new units occupied from 2015 to 2017.
New launches are expected to take centre stage this year and pent-up demand from buyers who have been holding back will possibly mean uptick in developer sales.
Last year, developers sold more units than the number of units launched. The number of private residential units sold were about 75% more than the 6,020 units sold.
While in the executive condominium front, developers sold almost thrice the 1,555 units launched.
