The Singapore private home market prices are rising by the fifth straight quarter; however, at a slower pace which is burning out the speculations regarding another major property curb in the coming future.
There was an estimated rise of 0.9% from the previous quarter to June, and it is followed by an increase of 3.3% during the first quarter with a 2.1% rise during the fourth quarter of the previous year. The year-by-year rise can be estimated to be around 7.3%.
Note that the Urban Redevelopment Authority released its flash estimates recently on 1st July, and it shows that prices of top landed properties rose by 0.8% during the second quarter as compared to 6.7% in the last quarter. If we talk about the non-landed properties, they enjoyed an estimated rise of 2.5% during the first quarter; however, the recent rise is only 0.9%.
This slow growth in the prices of both landed and non-landed homes in Singapore along with the delayed new launches in the market, damped the overall growth during the second quarter. During the first quarter, there were almost 3493 new-landed homes sold during the first quarter; however, the count fell to 2617 units during the second quarter.
The expert observations also reveal that the dampening in the market may also be influenced by the rising interest rates as it leads to some cooling effect on housing prices and demands. It is said that United States Federal Reserve may increase the interest rates by 2022 due to some major concerns related to inflation, and it will trigger other banks also to do the same.
The director at the Monetary Authority of Singapore recently revealed that the organization is highly vigilant to the risk associated with the sustained rise in housing prices in comparison to the income trends. The prolonged divergence in this field may lead to an undesirable kind of housing affordability perspective.
It is noticed that the market recovery ranging from the second quarter of the previous year to the second quarter of this year is very gradual as compared to the uptrend seen between 3rd quarter of the year 2017 to 3rd quarter of the year 2018 that caused a considerable jump of prices by 9.6% over the cooling measures of July 2018. This is why the risk of new cooling measures for the current quarter appears low; however, it cannot be eliminated completely.
In the suburban areas and outside the central region, the new home supply is observed to be leanest, and it resulted in a 1.8% rise in the price of non-landed homes. However, this price rise was least significant for the remaining central region and city fringe with a mark of 0.3%, especially when compared to the 6.1% jump of the previous quarter. If we talk about the prime districts, prices rose by 0.6% only. The resale homes make up a higher proportion of real estate transactions for the previous quarter, and the overall price index also went down just because of the lower price tags.
For more information, take a look at the webpage below.