News: Private home prices rose 7.9% in 2018

Jan 2, 2019

Private homes in Singapore.

Private residential property prices dipped 0.1 percent in the fourth quarter of 2018, a reversal from the 0.5 percent increase posted in the previous quarter.

For the whole of 2018, prices rose 7.9 percent compared to the 1.1 percent increase seen in 2017, revealed flash estimates from the Urban Redevelopment Authority.

Non-landed private home prices dropped by 1.5 percent in the Core Central Region (CCR) in Q4, after rising by 1.3 percent in the previous quarter.

The Rest of Central Region (RCR) and the Outside Central Region (OCR) both saw prices increase by 1.8 percent and 0.8 percent, a reversal from the 1.3 percent and 0.1 percent drop posted in Q3 respectively.

Eugene Lim, key executive officer at ERA Realty, attributed the moderate price increases in the RCR and OCR to the impact from new project launches like Kent Ridge Hill Residences, Whistler Grand, Parc Esta and Arena Residences.

For the whole of 2018, prices in CCR, RCR and OCR increased by 6.2 percent, 7.4 percent and 9.5 percent respectively.

“The Q4 2018 decrease of 0.1 percent is a very marginal correction, and is therefore not a cause for worry amongst property owners,” said Lim.

“We are expecting prices to hold steady in 2019, with the large number of new launches lined up over the year. Developers, while mindful to price realistically in order to move sales, are not under significant pressure to cut prices.”

Lim expects more than 40 new projects to be launched this year.

“Barring unforeseen externalities; we may expect a slower rate of property price increase of up to two percent in 2019; and this should align property price movement with Singapore’s economic growth,” he noted.

Singapore’s economy is also expected to grow by 1.5 percent to 3.5 percent this year.

Get more details on the property market outlook for 2019 here

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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