URA releases flash estimate of 2nd Quarter 2018 private residential property price index
SINGAPORE, 2 July 2018 – The URA’s private residential property price index rose 3.4% in 2Q18, slightly lower than the 3.9% in 1Q18, but still reflective of the buoyant price momentum in the market.
The price increase in the second quarter was underpinned by increased new launches with strong pricing as well as increased volume of transactions. 11 new launches were recorded in 2Q18 as against 7 in 1Q18 while transaction volume based on caveats recorded rose 14.2% in the second quarter (to-date). New sales volume rose an estimated 48% while resale and sub-sale volume remained roughly flat in the second quarter.
The Rest of the Central Region (RCR) spearheaded the non-landed price index increases in 2Q18 jumping 5.7%, from a gradual 1.2% in the first quarter. New launches with optimistic pricing contributed to the strong price increase in RCR. Examples of these new launches and their median prices include Amber 45 ($2,378 psf), Park Place Residences at PLQ ($2,045 psf), Margaret Ville ($1,871 psf), The Verandah Residences ($1,839 psf) and Harbour View Gardens ($1,763 psf). The transaction volume in RCR rose 34.2% in 2Q18 (based on caveats recorded to-date) while the overall median price of $1,665 psf during the quarter was 12.7% higher than that in 1Q18. In 2Q18, new sales in the RCR non-landed market accounted for 45.8% of its transaction volume, significantly higher than 31.7% in the first quarter.
In the Core Central Region (CCR), prices increased at a slower pace in the second quarter as seen in the 1.4% rise in the non-landed price index, which is much lower than the 5.5% recorded in 1Q18. There were less new launches in CCR in 2Q18 while a few new launches in 1Q18, including New Futura, had already set a high base on pricing for new sales.
The non-landed price index for Outside Central Region (OCR) also recorded a lower increase of 2.9% in 2Q18, following a more significant rise of 5.6% in the previous quarter. The transaction volume of non-landed homes in OCR rose 12.7% in 2Q18 spearheaded by a 38.6% surge in new sales. Examples of new launches contributing to the non-landed price increase in 2Q18 in OCR include Twin Vew, Affinity at Serangoon and The Garden Residences. Previously launched projects such as The Tapestry, Kingsford Waterbay and Parc Botannia also recorded strong sales in the second quarter.
The landed price index strengthened 3.8% in 2Q18, a firmer pick-up from the 1.9% rise in the first quarter. Landed prices had fallen more substantially than non-landed between 2013 and 2017 and its price increase during this recovery cycle has lagged non-landed properties. As landed prices appear attractive, buyers have been drawn to the landed market contributing to the firmer price increase.
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