Despite a fall in landed home prices of 2.2% in Q3, overall private home prices have risen for the second quarter in a row despite gloomy forecasts in the global economic sector.
Overall private home prices rose again in Q3
Private home prices rose 0.9% last quarter following a 1.5% increase in Q2. Compared to last year, the price index has risen by 1.7%. The largest leap came from the non-landed home sector with a price increase of 1.7% last quarter, following a 2% increase in Q2.
The largest increments for non-landed residential property prices were in the core central region. Prices in the prime core central region rose 2.9% in Q3, following a 2.3% rise in the previous quarter. In the rest of the central region, non-landed property prices rose 1.6%, a growth despite a slower one compared to the 3.5% increase in Q2. Outside of the central region, prices rose 0.7% last quarter.
Private home prices expected to remain stable this year
For the rest of the year, analysts are expecting prices of non-landed private homes to remain stable. They are counting on Singapore’s continued population growth and positive employment numbers to reinforce the long-term demand for housing and to sustain the growth of home prices here.
Although the property cooling measures which the government has put in place over the previous years have not been lifted, last quarter’s rise in the private residential price index has shown that the market sentiment is on the mend. There are however concerns of the authorities putting further pressure on the sector as the numbers seem to contradict the darkening economic outlook.