Rise in completed home prices slowing

Prices of completed non-landed homes continued to grow last month, but at a slower pace.

38 Lor 30 Geylang. Picture: iProperty.

Slower growth reflected in most property segments

In May, prices rose 1.5% but in June, the climb was only 0.7%. Prices of completed non-landed apartments in the central region rose 0.4% in June following a 2% rise in May. This excluded small apartments which are defined as units sized 506 sq ft and below. Prices of these properties rose 1.1% in both May and June.

There has been a demand for smaller units as resale volume shows. The percentage of small resale units in May’s overall resale property volume was 6.9%. The number of transactions grew to 7.1% in June.

In the outside-of-central (OCR) region, completed resale non-landed home prices rose 0.8%, down from May’s 1.4%.

Private property prices up overall

Across the board, the private property market has done well thus far this year. In a year-on-year comparison, private property prices have risen 9.2%. In the central and non-central regions, prices rose 9.4% and 9% respectively.

Analysts are however expecting a slower rise in prices in the next half of the year. Sales at properties launched after the measures were slower as well.

New launches may enter the market at lower prices following last month’s new property cooling curbs. Will this bring sales figures up?