SINGAPORE – Private home prices in Singapore climbed for the sixth straight quarter at a continued moderate pace, as bigger gains for landed properties offset a smaller increase for condominiums and private apartments.
The 0.9 per cent price gain in the third quarter over the previous three months follows an increase of 0.8 per cent in the second quarter, and a 3.3 per cent rise in the first quarter. Year on year, prices are up 7.3 per cent.
Private home prices have increased 5.1 per cent in the year to date, 8.1 per cent since second quarter of last year and 20.8 per cent since the most recent low in the second quarter of 2017, said Huttons Asia chief executive Mark Yip.
The Urban Redevelopment Authority’s (URA) flash estimates released on Friday (Oct 1) showed that 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 luxury segment extended its hot streak in the third quarter, notching several notable deals, Mr Yip said.
A 6,049 sq ft unit at Les Maison Nassim fetched $35 million, or $5,786 psf, last month, while nine units at 15 Holland Hill were transacted at above $5 million each in July and August this year, he said.
In the second quarter of this year, 8 per cent of prime district homes were sold to foreigners. This doubled to 16 per cent in July and August, Mr 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.
Non-landed properties saw only a 0.5 per cent gain, after climbing 1.1 per cent in the second quarter, with fewer new launches and sales amid tightened Covid-19 curb and the Hungry Ghost month.
Prices in the city fringe or the rest of central region gained 2.2 per cent compared with a 0.1 per cent rise in the previous quarter.
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.
Prices fell 0.6 per cent in the prime districts, following a 1.1 per cent gain.
The overall price index gain was also dampened by the fact that resale and mass market homes formed 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.
“These homes are typically sold at lower prices when compared with other market segments, thus lowering the overall average price for the entire market,” she said.