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Latest Property Real Estate News - Published on 26/10/2018
URA’s Q3 2018 data shows that prices of private homes in Singapore increased by 0.5 per cent quarter-on-quarter (Q-o-Q), with 5,765 transactions (New Sale, Sub Sale and Resale).
Chief Executive Officer of PropNex Realty, Mr Ismail Gafoor said, “The performance of the overall volume of private residential homes in 3Q 2018 is encouraging despite the cooling measures in July. However the numbers were largely attributed by the surge of uncompleted new homes sales as buyers rushed to buy units on the eve of the cooling measures (in July).”
Mr Ismail also noted that it is quite apparent that the measures did impacted the resale segment (2,672 units) which witnessed a 43.1 per cent drop in transaction as compared to the previous quarter at 4,700 units.
“Generally, an immediate reaction to any cooling measures would be a ‘wait-and-see’ attitude from buyers and investors however for new launches we saw healthy take-up rates as developers reacted quickly with sensitive pricing to entice buyers. On the other hand, in the resale market, sellers held on to their prices and buyers were not as forthcoming in the take-up of the resale properties,” he added.
Nonetheless, Mr Ismail predicts stronger take up rates in the resale market in the 4th quarter of 2018 contributed by the demand of en bloc owners finding their replacement homes. He expects transaction to hit total of 5,000 units for 4Q 2018. This would sum the total transactions for 2018 to be 23,500, about 5 per cent drop from 2017.
On the prices of private homes, Mr Ismail Gafoor said, “The subdued growth in private residential price this quarter reflects the immediate effects of cooling measures in July. Prices generally weakened due to sensitive pricing offered at new launches and existing developments (to the tune of 5 per cent). With sensitive pricing that attract home buyers, we expect the year to end with overall price growth of 8 to 9 per cent for 2018.”
“Moving forward, we do not expect prices to tumble because property developers are ‘locked’ by the high land bid costs.” In 2019, Mr Ismail predicted that prices of private residential properties will grow between 2 to 3 per cent.
Highest take-up rates in the last 8 years with 7,063 transactions in 3Q 2018
HDB Resale segment witnessed 7,063 transactions this quarter, the highest figure since 3Q 2010 where 8,205 transactions recorded.
“HDB resale properties reflects continuous demand, especially for 5-Room and Executive units which draw interests from former en bloc owners who are attracted by their size and affordability.” Mr Ismail highlighted. He foresees that transactions for the resale segment will witness close to 24,000 transactions by end year, an increase of 8 per cent from 2017.”
HDB market prices have stabilised with negligible price decline of 0.1 per cent in 3Q 2018. Mr Ismail predicted, “Stronger demand and take-up rates by buyers for public housing sets the pace for turnaround of positive growth in 2019, by 1 to 2 per cent.”