Singapore private home prices dip 0.3% in Q2, extending losing streak to 15 quarters

Overall private housing prices have fallen for 15 straight quarters, or since the fourth quarter of 2013.
Overall private housing prices have fallen for 15 straight quarters, or since the fourth quarter of 2013.PHOTO: ST FILE

SINGAPORE - Private home prices in Singapore declined 0.3 per cent in the second quarter of 2017, easing slightly from the 0.4 per cent drop in the first quarter, according to flash figures released on Monday (July 3) by the Urban Redevelopment Authority (URA).

This means that overall private housing prices have fallen for 15 straight quarters, or since the fourth quarter of 2013.

Prices of non-landed private residential properties dipped 0.3 per cent in the April-June quarter, after remaining unchanged in the previous three months. Prices of landed homes fell by 0.4 per cent, compared to the 1.8 per cent decrease in the previous quarter.

URA's flash data showed non-landed prices fell by 0.9 per cent in Core Central Region (CCR), compared to the 0.4 per cent fall in the previous quarter. Prices in the Rest of Central Region (RCR) increased by 0.5 per cent, after registering an increase of 0.3 per cent in the previous quarter. Prices in Outside Central Region (OCR) decreased by 0.4 per cent, after a 0.1 per cent increase in the previous quarter.

Mr Ong Teck Hui, JLL's national director for research & consultancy, said the 0.3% price decline in the second quarter after the 0.4 per cent softening in the first quarter indicates 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," he said.

PropNex Realty CEO Ismail Gafoor noted that the 0.3 per cent price dip in in the second quarter  is the smallest drop in prices since they started to decline in Q4 2013 with the introduction of cooling measures in the same year.

"This is a clear sign that the private property market is consolidating, with strong volume of transactions witnessed thus far this year, he said. "With aggressive land bids and the positive sentiment we expect prices to grow positively by next year.”

Mr Ismail said he expects overall prices in 2017 will drop by a marginal 2 per cent as compared to -3.1 per cent in 2016.

URA's flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-June. The statistics will be updated on 28 July when URA releases the full real estate statistics for 2nd Quarter 2017.

URA said past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small.