Skip Ribbon Commands
Skip to main content

News Release

Singapore

JLL's perspective: Flash estimates of 1st quarter 2014 Private Residential Property Index

Softening in residential property prices continue, led by 2.8 per cent decline in the index for Rest of Central Region


SINGAPORE, 01 April 2014 - The private residential property price index fell 1.3 per cent in 1Q2014, compared to 0.9 per cent in the previous quarter. This is mainly due to the larger decline of 2.8 per cent in the index for Rest of Central Region (RCR) compared to more modest falls of 1.3 per cent for Core Central Region (CCR), 0.3 per cent for Outside Central Region (OCR) and 0.6 per cent for the landed segment.

The index for RCR was dragged down by the lower prices of The Hillford, a 60-year leasehold project at Jalan Jurong Kechil. Based on caveats lodged in the first quarter, its average price is $1,103 psf, well below the average price of $1,345 psf for other transactions in RCR. The Hillford’s transactions also account for about one-third of the total for RCR, thus weighing down its overall average price. Without this aberration, the fall in the RCR index might have been less significant.

The OCR market and the landed segment posted relatively lower declines in their indices, showing a bit more resilience than the other segments. OCR homes, which are more affordable and landed housing, which is limited in supply, still enjoy some advantage over the other segments.

Change in Private Residential Price Indices

 4Q20131Q2014
Non Landed  
Core Central Region-2.1%-1.3%
Rest of Central Region0.4%-2.8%
Outside Central Region-1.0%-0.3%
Landed Residential Properties-1.0%-0.6%

Source: URA, JLL

Mr Ong Teck Hui, National Director, Research & Consultancy, JLL comments:

"So far the pace of price decline has been gradual but if transaction volume continues to be significantly impeded by all the cooling measures in place, the magnitude of price decline may eventually increase. There will be greater pressure on prices if demand remains stagnant or weakens while unsold supply builds up."

– ends –