The residential homes prices were dropped to 3.1 percent in 2016. However, later on, all prices were increased to 1 percent.
If we compare everything then the increase in prices is as follows:
• Core Central Region (CCR): 0.8 %
• Rest of Central Region (RCR): 1.6 %
• Outside Central Region (OCR): 1.2 %
Note: These estimates have been based on two main things:
1. All the units that the developers have sold until 15 December
2. All the contracts that contain transaction prices
Let’s have a thorough look at the rise in prices and how it has affected the overall real estate operations.
According to an estimate by the urban redevelopment authority (URA), Private residential home prices had increased to 0.7 percent in August 2017. Later it augmented the same amount in October.
In the last quarter of 2017, the prices were further increased to 0.7 percent, which was later compared with the 0.6 upraise in the quarter before that. This increase was in case of non-landed homes.
The results further found out that gradual increase was mainly in the areas of core central region CCR (1.6 % rise) which came right after the 0.1 increase in the quarter before that.
What about the landed home?
As for the landed homes, the prices were increased at quite a slower pace.
Starting from July, the prices were increased at least 1.2 percent. After which, there was a 0.6% increase reported.
Prices in the Suburbs (OCR)
In the suburbs, there had been a little change in the increase in prices. This was mainly due to the fact that the prices increased to 0.8 percent in July. After which, at the start of October, it rose up to 0.6 percent.
Prices in the (RCR)
In July, home prices increased at a 0.5 percent and later slowed down at a rapid pace. This is why in October, it increased to only 0.2 percent.
The Reason for increase in Private Home Prices
If we take into consideration the 2017’s higher sales volumes of a private home, then it can be said that the increase in prices was quite evident. Listed below are two main factors that contributed to this kind of increase.
I. When government modified the seller’s stamp duty in March, it kind of changed the dynamic of how realtors dealt with home sales.
II. Other than that, the sales quickly escalated in the various markets, mainly primary and secondary.
Last year, there was an increasingly high demand for the private homes. Not only the investors but the buyers also wanted the best from a whole lot.
Note: The statistics from October till December 2017 will be updated on 26 January 2018.
A Final Word
Keeping in mind all the factors mentioned in the article, it is expected that the private home prices will continue to rise. A few experts in the field are predicting that there might be a 6 to 8 percent increase in the private home index. While some others are suggesting that the prices will not escalate as there is no consistent increase within two quarters.
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