Channel NewsAsia
Updated: 01/25/2013 19:51 | By Channel NewsAsia

Private home prices up 1.8% in Q4: URA

Private home prices up 1.8% in Q4: URA


Private home prices up 1.8% in Q4: URA

SINGAPORE: Private home prices rose 1.8 per cent in the fourth quarter of 2012, compared to a 0.6 per cent increase in the previous quarter.

But for the whole year of 2012, prices of private residential properties increased by 2.8 per cent, a smaller rise compared to the 5.9 per cent growth recorded in 2011.

The Urban Redevelopment Authority (URA) on Friday said that prices of non—landed properties outside the central region rose 3.8 per cent in the fourth quarter, compared to an increase of 1 per cent in the third quarter.

Prices of non—landed properties in the core central region edged up 0.7 per cent in Q4. For the rest of the central region, prices increased 0.9 per cent.

Market experts say most of the price increases are in the resale market segment.

Ms Alice Tan, Senior Manager at Knight Frank, said: "This is largely attributed to higher resale property prices whereby investors are more keen on the resale market due to the high new sale prices in the CCR region. In contrast the new sale, uncompleted property prices in CCR has actually declined by 1.4 percent."

Some analysts note that the last quarter of the year don’t normally see residential property prices increase strongly. But last year’s fourth quarter defied this convention, making the highest price increase in all the quarters of 2012. "

But experts say the latest round of property cooling measures will slow down the market over the next few months.

This comes as both developers and buyers will stay at the sidelines and adopt a wait—and—see attitude towards property buying.

Yet some experts believe it’s the best time for buyers to cherry pick on their choice units.

Mr Thomas Tan, Executive Director at REMAX, said: "We still have a big group of people — first time owners — who are still eager to own a first home. This is a good time for them to go in because they will have a bit more bargaining power against the developer. Developer may be willing to give a little bit of discount just to close the deal. So they are moving in and they will actually prop up market rather than crash the market. So I think the demand is still there."

Rentals of private homes climbed 0.7 per cent in Q4. For the full year, private home rentals rose 2.1 per cent, compared with the 3.8 per cent increase in 2011.

For office space, rentals decreased by 0.3 percent in the fourth quarter. This followed a decline of 0.1 per cent in the third quarter.

For the whole year, rentals of office space declined 1.3 percent, compared with an increase of 8.4 per cent in 2011.

Meanwhile, shop space rentals rose 0.2 per cent in Q4, after a drop of 0.3 per cent in the previous quarter. For 2012, rentals of shop space fell 0.3 per cent, compared with the 2.6 per cent increase in 2011.

Prices of multiple—user factory space decreased by 2.7 per cent in the fourth quarter, compared with the 10.1 per cent rise in Q3. For the whole year, factory space prices surged 24.5 per cent.

Rentals of multiple—user factory space increased by 3.9 per cent in Q4. In 2012, rentals of multiple—user factory space climbed 9.7 per cent.

— CNA/al

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