SINGAPORE – Private home prices in Singapore climbed for the sixth straight quarter at a continued moderate pace, driven largely by the gains in landed properties.
The 0.9 per cent price gain in the third quarter follows an increase of 0.8 per cent in the second quarter, and a 3.3 per cent rise in the first quarter, according to flash estimates from the Urban Redevelopment Authority (URA) on Friday (Oct 1).
Year on year, private home prices have increased by 7.3 per cent. And in the first nine months of this year, they have risen by 5.1 per cent, compared with 2.2 per cent for the whole of last year.
The overall index gain was modest because resale and mass market homes – which typically fetch lower prices compared with other market segments – accounted for a bigger proportion of total sales in the third quarter, said Ms Christine Sun, senior vice-president of research and analytics at real estate firm OrangeTee & Tie.
Prices of landed properties climbed 2.5 per cent in the third quarter, compared with a 0.3 per cent fall in the previous quarter, the URA data showed.
Analysts noted that the luxury segment notched several notable deals.
A 6,049 sq ft unit at Les Maisons Nassim fetched $35 million, or $5,786 per sq ft (psf), last month, while nine units at 15 Holland Hill transacted at above $5 million each in July and August this year, Huttons Asia chief executive Mark Yip, said.
“The luxury market may get a boost when more vaccinated travel lanes are set up and foreigners are able to travel to Singapore,” he said.
In contrast, non-landed properties saw just a 0.5 per cent gain, after climbing 1.1 per cent in the second quarter, due to fewer new launches and new sales amid tightened Covid-19 curbs and the Hungry Ghost month.
The city fringe or the rest of central region led the non-landed submarkets with a 2.2 per cent gain compared with a 0.1 per cent rise in the previous quarter.
While there were no large new launches in the city fringe area in the third quarter, some existing projects transacted at higher prices, Mr Nicholas Mak, head of research and consultancy at ERA, noted.
The median transacted prices of top-selling condos such as Normanton Park rose to $1,828 psf in the third quarter, from $1,809 in the second quarter. Ki Residences at Brookvale climbed to $1,858 psf from $1,827 psf, while Avenue South Residence jumped to $2,249 psf from $2,221 psf, he said.
But in the suburbs or outside central region, non-landed home prices dipped 0.2 per cent following a 1.9 per cent rise in the previous quarter.
This was despite two new launches – Pasir Ris 8 (425 units sold) and The Watergardens at Canberra (281 units sold), which together accounted for 37 per cent of new sales in the suburbs, said Mr Ong Teck Hui, senior director of research and consultancy at JLL.
Mr Mak noted that even though Pasir Ris 8 was the best performer in terms of units sold, the median transacted price for the project was only $1,627 psf for the third quarter. This compares with the median transacted price of $1,617 psf for non-landed properties in the suburbs.
Prices in the prime districts or core central region (CCR) fell 0.6 per cent in the third quarter, following a 1.1 per cent gain in the second quarter, the flash data showed.
There was only one new launch – Klimt Cairnhill – in the third quarter, compared with five in the second quarter, Mr Ong said.
Mr Mak noted that some luxury condo developers may have lowered prices to attract local buyers as border restrictions continued to curb foreign demand.
The median price of Leedon Green, the top selling project in the prime district in the third quarter, was 2 per cent lower compared with the second quarter, he noted.
“Source: [Singapore private home prices up 0.9% in Q3, rising for 6th straight quarter: Flash data] © Singapore Press Holdings Limited. Permission required for reproduction”