Planning to buy a private home in Singapore? Check for the prices as it is on rise since quarter three as much as by 1.1%. Though the pandemic situation brought economic crisis all over the world, but that is not really affecting the real estate business in Singapore. The prices of landed properties, private homes are on rise since the last quarter. According to Urban Redevelopment Authority (URA) there was 0.8 per cent rise in second quarter and now in third quarter it is 1.1 per cent, which is definitely on the higher side. Normally in a year the rise is about 7.5 per cent but in this year the rise has already reached 5.3 per cent.
The landed property prices are also rising, it has increased to 2.6 per cent in the third quarter which was actually 0.3 per cent contraction in the second year. The main reasons behind this are high demand for landed property and a huge sale of Good Class Bungalows (GCBs).
Whereas the prices of Singapore condominiums and apartments are on a slow pace. It is 0.7 per cent in the third quarter which was 1.1 per cent in the second quarter. The reasons behind this, is basically the slower price growth in prime, core central, suburb and outside of core central region.
The situation is as follows:
Now, if we consider the transaction volume then, there is a rise of 19.7 per cent in the third quarter. The executive condominiums (ECs) are not included in this data. For ECs it is nearly 45 per cent up in the third quarter.
Though the new private home launch is on low by 8.8 per cent in third quarter, but because of high demand the take-up rate has increased a lot.
Many new projects like Pasir Ris 8, The Watergardens at Canberra, Normanton Park etc. has seen a boost in the sale because of the rising demand. More boosting is done by the expanded Vaccinated Travel Lane scheme like quarantine-free travel lanes with a few countries.
There is nearly a 12 per cent fall in third quarter in the total number of unsold completed and uncompleted units than it was in second quarter. This is definitely going to boost the bidding activity for the government land tenders and as a whole the sale attempts.
The resale transactions are also on rise as compared to previous quarter. It has exceeded 5000 units already.
If we now take a look in the rental market, the landlords are able to take higher rents as because of the new construction delays and limited available stocks. Rent of private homes, non-landed properties, in prime areas, city fringes show a slower growth rate as compared to the suburbs. Tenants are more interested in taking long term lease considering the pandemic situation. Companies in tech sectors are also interested to go for long term lease. The GCBs are attracting the ultra-high-net-worth families who are willing to pay top rental premiums.
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