Non-landed private home prices stay flattish in August

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Published September 29, 2010

Non-landed private home prices stay flattish in August

NUS flash estimate offers a snapshot before government's cooling measures

By KALPANA RASHIWALA


(SINGAPORE) The latest flash estimates from National University of Singapore (NUS) show that prices of non-landed private homes remained flattish in August compared with July. This period would not have shown up the impact of the government cooling measures, which were announced on Aug 30.

The Singapore Residential Price Index (SRPI), compiled by the NUS Institute of Real Estate Studies, covers only completed properties.

NUS's overall price index for non-landed homes for August rose 0.8 per cent month on month, compared with a month-on-month drop of 0.1 per cent for July. The June index was up 0.6 per cent over May. In May, the index appreciated 2.4 per cent.

Knight Frank chairman Tan Tiong Cheng said the numbers show that the market for resale apartments/condos had stabilised since June, even before the Government announced its latest set of cooling measures.

'Much of the sales in the primary market (developer sales) in the past few months have been driven by shoebox units. So the volume of developer sales was pretty strong in July and August but if you look at the absolute dollar quantum of units sold, it's not increasing,' he explained.

NUS' sub-index for Central region, which covers a basket of properties in districts 1-4 and 9-11, was unchanged in August, following a 0.8 per cent month-on-month drop in July. The sub-index for Non-Central region rose 1.5 per cent in August from the preceding month, after a 0.5 per cent increase in July.

Since the end of last year, all three indices have appreciated, to the tune of 10 per cent for the overall index, 7.6 per cent for the Central region and 11.8 per cent for the Non-Central region.

The August flash estimate for Central region is still 4 per cent below the pre-crisis high in November 2007. However, for the Non-Central region, the latest index has surpassed its respective pre-crisis peak in January 2008 by 13.9 per cent. As a result, the overall SRPI flash estimate for August is 6.9 per cent above its Nov 2007 high.

The SPRI is compiled based on a basket of properties for the base period Dec 2009 comprising 74,359 units in 364 projects within the 26 postal districts completed between Oct 1998 and Sept 2009. The basket is to be reviewed every two years.

Market watchers are awaiting the government's release of flash estimates for the Q3 2010 prices indices for private homes and HDB resale flats on Friday for an idea of the impact of the recent cooling measures.

Meanwhile, the soft launch of Vacanza@East yesterday is said to have drawn an impressive turnout at its showflat at Lengkong Tujoh in the Kembangan area. Initially two blocks or 141 units were released but sources say that eventually, the entire project, which has 473 units in seven blocks, was made available. The average price is said to be about $1,090 psf for the 12-storey freehold condo, which faces the Pan Island Expressway.

Its developer, Hoi Hup Sunway Property, declined to provide a sales update.

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Sep 28, 2010

Resale home price rises slowing

Sales of new homes also reported to be quiet over weekend

By Joyce Teo, Property Correspondent


PRICES of private resale homes are continuing to hit record highs, although the pace of increase has generally continued to slow this quarter, according to a report by property consultancy DTZ.

Over the rest of the year, this weakening growth is likely to grind to a halt as recent government measures to cool the residential market take effect, it said.

'Sales volume is expected to be lower as sellers continue to maintain their asking prices while potential buyers hold out for lower prices.'

The DTZ report said resale prices of suburban leasehold homes increased by 2 per cent to $660 psf in this third quarter.

This compares with a 4 per cent rise in the second quarter, which took prices to $648 psf. The 2007 peak for these homes was $615 psf.

In the new homes market last weekend, sales were generally fairly quiet, as buyers may have been distracted by the Singapore Grand Prix, said an industry source.

NV Residences in Pasir Ris sold another 35 units, lifting total sales to 335 out of 380 launched units, said a City Developments Ltd (CDL) spokesman.

It sold 50 units the previous weekend and 90 units over the Hari Raya weekend.

The 642-unit condo had sold 160 units at its Sept 8 preview despite the Aug 30 cooling measures having kicked in by then.

The CDL spokesman said a 'good mix of all types' of homes were sold and that there had been no change in price. CDL had earlier raised the price by 1 to 2 per cent from $830 psf on average.

Over in Leonie Hill Road, Overseas Union Enterprise could not provide a sales update for its 99-year leasehold Twin Peaks project launched about a week ago.

But executive chairman Stephen Riady said he is confident of selling the 462-unit project, where homes are sold on a fully furnished basis.

The firm released 70 units for sale last weekend - the number needed to cover construction costs. It sold half of them, achieving prices of $2,890 psf.

Another 12 units are booked, having been reserved two months ago by buyers wanting to delay their decisions because of the cooling measures, he said.

The DTZ report said resale freehold condo prices in prime districts 9, 10 and 11 rose 1.4 per cent to touch $1,513 psf, slowing from a 2.6 per cent rise in the second quarter as well-heeled investors remained cautious about the growth of major economies in the West.

Still, the price level is already above the previous 2007 record of $1,483 psf.

Luxury condos - the only segment where prices are still just below the 2007 peak - also saw a slower rise, of 1.6 per cent quarter-on-quarter, to $2,630 psf.

The landed homes segment, which has seen robust growth since the second quarter of last year, was not spared the slowdown, DTZ research shows.

Prices of prime freehold landed homes rose by 2 per cent quarter-on-quarter to $1,611 psf, compared with the 3.3 per cent growth clocked up in the second quarter of this year.

Outside the prime districts, landed home prices inched up by 1.7 per cent to $952 psf. But this rise means these prices have, for the first time, surpassed the high of $943 psf recorded during the 1996 boom, DTZ said.

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