As per the recent reports, the new private home prices jumped by 3.3% during the first quarter, which is much above the early estimate of 2.9%. The main reasons behind this steep rise are observed to be the new launches during this economic recovery mode, vaccine optimism, and the low-interest rate opportunities.
It is believed to be the fourth consecutive rise in price with a steep quarterly hike right from the second quarter of the year 2018. At that time, the pricing of private residential homes was increased to 3.4% before the property curb issues were reported in the July month of that year.
The information presented by the Urban Redevelopment Authority on 23rd April shows that there was a 3.3% price rise during the first quarter this year and it is higher than the reported 2.1% growth during the fourth quarter of the previous year.
Experts state that if the price keeps on growing at this pace and it exceeds above the gross domestic product growth forecast of the government, which is 4% to 6% per year; then the chances of introduction of colling measures will be increased. It is also believed that the launch of new real estate products at considerably higher per square foot pricing may automatically fuel up the price index in the market.
On the other side, the new unit sales from developers jumped by almost 34% during the first quarter with the estimated 3493 units. This count excludes the executive condominiums in the target market. Note that the market figures report sale of2603 units during the first quarter. The resale volume also increased to 4519 units during the first quarter as compared to 4249 units sold during the fourth quarter.
It is observed that the foreign investors are returning to the Singapore property market along with the top buyers from China. During the previous quarter, almost 281 non-landed homes, other than executive condominiums, were purchased by foreigners, and transactions for around 199 units were closed during the fourth quarter.
The count for non-landed homes purchased by the permanent residents also increased by almost 28.2% with 872 units sold during the fourth quarter and 1118 units sold during the first quarter. However, experts also noted that the proportion of the homes purchased by Singaporeans decreased to 79.3% from 81.3% over the same duration.
The mainland Chinese invested in 339 non-landed homes during the first quarter; whereas 170 units were purchased by Indians and 198 units by buyers from Malaysia. The trend for Americans buying homes in Singapore is also rising and they have now replaced Indonesians while being the fourth largest group of real-estate foreign investors in the country.
It is observed that Americans purchased 58 non-landed homes during the previous quarter which is considerably higher as compared to the 45 units during the fourth quarter of the year 2020 and 40 units during the first quarter of 2020. A higher range of South Korean and Taiwanese buyers was also reported during the previous quarter.
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