Private home prices up 3.8% in Q 3 but price growth seen easing amid headwinds, cooling measures
Private home prices up 3.8% in Q 3 but price growth seen easing amid headwinds, cooling measures. Due to economic challenges, the latest round of property cooling measures, and the end-of-year cyclical drop, private home prices may expand more slowly in Q4 after increasing 3.8% in Q3. The increase in Q3, the tenth consecutive quarter of rising prices, increased from 3.5 percent in Q2 and exceeded the Urban Redevelopment Authority’s earlier this month flash estimate of 3.4 percent.
Private home prices will rise by 1 to 2% in Q4, but by 9 to 10% for the year, according to Lee Sze Teck, senior director (research) at Huttons. Private property values increased by 8.2 percent in the first three quarters.
“The new policies could engineer a soft landing, with new private housing sales gains and price rises in the next 12 months,” according to CBRE. The government adopted new property cooling measures in September to decrease demand and ensure cautious financing. CBRE does not anticipate a crash, citing factors such as stable household finances, little unsold inventory, and a strong rental market.
According to Cushman & Wakefield, price hikes will slow, although developers are unlikely to cut prices at new launches. Developers are likely to slow their launch progress and re-calibrate their marketing strategies in light of potentially lower demand due to higher interest rates and an economic slowdown,” he said.
Non-landed property prices led the increase in private home prices in Q3, increasing by 4.4% after increasing by 3.6% the previous quarter. Outside central region (OCR) non-landed home prices increased the most, by 7.5%, thanks to major launches such as AMO Residence, Lentor Modern, and Sky [email protected], which saw brisk sales even at benchmark prices. Due to high demand from HDB upgraders, the median price of units sold in those projects in Q3 was all more than S$2,100 per square foot. Non-landed property prices in the OCR increased by 2.1% in Q2.
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