The requested news item does not exist. Please return to News
Ong Teck Hui, National Director, Research & Consultancy
The -0.3% decline in the URA’s private residential property price index in 2Q17 following a -0.4% softening in 1Q17 is indicative of a further moderation in price decline and the market heading closer to the bottom. It is likely to be read positively by the market and have a favourable effect on buyers.
The non-landed index for CCR fell -0.9% in 2Q17 following a decline of -0.4% in the previous quarter. However, over the last 6 quarters, there were 3 quarters of decline versus 3 quarters of increase (non-consecutively).
In the case of RCR, its non-landed index rose 0.5% in 2Q17, following an increase of 0.3% in 1Q17. Over 6 quarters, there were 2 quarters of decline, 3 quarters of increase and a flat quarter (non-consecutively).
The above analysis for CCR and RCR over a longer time frame enables us to see their non-landed indices fluctuating between declines and increases which is indicative of a transition towards bottoming. It is noted that the magnitude of declines are higher than increases which suggest that buyers still hold the advantage in transactions.
The non-landed index for OCR registered a -0.4% drop in 2Q17 after rising 0.1% in 1Q17. Over 6 quarters, there were 5 quarters of decline against 1 quarter of increase which suggest that OCR is behind the curve in recovery compared to RCR or CCR.
The fall in the landed index moderated to -0.4% in 2Q17 after a more substantial correction of -1.8% in 1Q17. Cumulatively, the landed index has fallen a significant 16% over 15 quarters. Buyers are finding landed prices more attractive and this has led to 527 units transacted (based on caveats) in 2Q17, 56.8% higher than 1Q17, and the highest quarterly landed sales volume since 4Q12. The landed market may well be on the road to bottoming if buying interest is sustained.
HDB resale index
The HDB resale index eased 0.1% in 2Q17, a moderation from the 0.5% softening in 1Q17. It has been fluctuating over the last seven quarters but with decreases predominantly which shows that prices are still on a mild downtrend. The sustained supply of new BTO flats for sale will continue to keep resale prices in check as they provide more affordable options especially for first time buyers."
Ong Teck Hui
+65 6494 3727 / +65 9842 1155