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Latest Property Real Estate News - Published on 25/01/2013
The URA today released the price index for private residential property for 4Q12. Overall residential property index rose from 208.2 points in 3Q12 to 212.0 points in 4Q12, representing an increase of 1.8% compared to a 0.6% increase the previous quarter. With that increase, the price index rose to a cumulative total of 2.7% for the entire 2012.
“Even though the price rise of 1.8% q-on-q island-wide is the strongest in 2012, the y-on-y growth of 2.7% is still fairly moderated compared to years 2009, 2010 and 2011 (where prices jumped 4.4%, 16.5% and 5.7% respectively). However, the increase is somewhat matching the market expectations of overall private property price increase of 3% for 2012,” remarked CEO of PropNex Realty Mr Mohamed Ismail.
“While 4th quarters are not traditionally a period for strong price increases, the jump in both the island-wide and individual segments of the private residential market comes against the backdrop of tightened immigration measures and the six concerted efforts by the government to cool the residential market. The overwhelming popularity of homes in Outside Central Region (OCR) helped to boost prices of mass-market homes. Prices of non-landed private homes in the OCR increased the most – rising 6.4% overall in 2012 compared to 0.7% (CCR) and 1.5 (RCR).
The main contributor for the price increase in 4Q2012 was the strong demand fuelled by Singaporean investors or PRs buying the second or third properties and HDB upgraders. However, with the latest cooling measures in January 2013, the hefty ABSD of 5% for PRs for the first property, 7% for Singaporeans’ second property purchase, this group of investors who had wanted to purchase the second or third property, are going to be sidelined.
Based on the close monitoring of activities in the past 2 weeks after the cooling measures, it was predicted that the market will ease with muted price increase of 1 – 3%, keeping pace with inflation and economic growth,” as Mr Ismail analyzed on the impact of the cooling measures.
He added, “We are not likely to see a drastic drop in private property prices due to the low interest rate environment and that developers had paid high prices for the recent land bids. As such, it was expected that these developers are not likely to sell their upcoming new launches much lower. Thus, developers are likely to be holding on to their project sales until the market recovers.”
“Sales volume is expected to drop by more between 20 - 30% as buyers and investors choose to wait-out and see the effects of the cooling measures. January is usually the slower month and we are monitoring closely after the Chinese New Year season if market activity picks up,” concluded Mr Ismail.
Many salespersons are now taking the time to upgrade themselves, attend training and equip themselves with the latest market trends and knowledge. PropNex has also mapped out a series of Consumer Empowerment Seminars targeted at homebuyers who needed to understand the myriad policies introduced and the impact on their investment portfolio. The first quarterly Consumer Empowerment Seminar is to be held on 5 March at Kallang Theatre, 7.30pm in equipping consumers with the power of knowledge in this intricate market. In addition, there are the complimentary weekly previews of the Ultimate Property Seminars. (Bookings available now online at www.propnex.com)
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For media enquiries, please contact:
Carolyn Goh
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P & N Holdings Pte Ltd (holding company of PropNex Realty)
480 Lorong 6 Toa Payoh #10-01 HDB Hub East Wing Singapore 310480
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