2017 was a good year for the private property sector. Prices rose 0.7% in Q3 of last year and then again in Q4. Private residential property prices rose 1% last year, a considerable turnaround considering the 3.1% fall in 2016.
Private residential property sector turns around in 2017
Properties in the prime districts or the Core Central Region (CCR) made the biggest turnaround with a 1.6% rise in the last quarter of 2017. The government’s adjustment of the Seller’s Stamp Duty (SSD) last March could have accounted for an increase in the number of private property transactions in both the primary and secondary markets.
Consumer sentiments have improved significantly. There has also been pent-up demand from owner occupiers and investors for private homes over the past 2 years. These have in turn translated into more-than-keen interest in the resale as well as new property markets.
Landed property prices rise too but slower
Landed residential home prices rose as well though at a slower pace. Properties here come at heftier quantum prices hence the slower rise is understandable. But the 1.2% and 0.6% price hikes in Q3 and Q4 respectively are promising signs of a good year to come.
The active land sales from last year also means private property prices may continue to rise this year. Property analysts are hopeful for a continued good run this year. 2018 will see a broad-based recovery in the private property sector. A steady recovery is expected.