Jul 4, 2011

The private residential property price index climbed 1.9 percent to 202.8 points in the second quarter, compared to a 2.2 percent increase in the previous quarter, according to the Urban Redevelopment Authority’s (URA) flash estimates.

In addition, prices of non-landed private residential properties grew 1.6 percent in the Core Central Region and Outside Central Region and 1.2 percent in Rest of Central Region.

“Price increases in Q2 were marginally below expectations. However, for the Core Central Region and Outside Central Region, the flash numbers were within expectations,” said Alan Cheong, Associate Director at Savills Research & Consultancy.

“We may expect further moderation in general prices in Q3 and Q4. Should Q3 numbers come in above expectations, it may signify that the market has re-invigorated itself during the quarter.”

However, “if Q3 numbers come in below expectations, it will probably signify that the private residential market is taking a breather from its strong momentum built over the past two quarters,” he said.

The flash estimates are determined based on transaction prices given in caveats lodged during the first 10 weeks of the quarter and supported by information on the number of new units sold.

Meanwhile, Joseph Tan, Executive Director of Residential at CB Richard Ellis (CBRE), believes that although the private residential price index for Q2 2011 increased, “this does not necessarily mean that home prices have fallen.”

“Prices have in fact remained stable although it has slowed down from a rise of 2.2 percent in the previous quarter and 2.7 percent rise in the fourth quarter of 2010.”

“New launches that sold well in the reference quarter will make a strong impact on price trends.”

Info courtesy -