Property price rises in Q2: HDB, private sectors

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http://www.straitstimes.com/Breaking...ry_686085.html

Jul 1, 2011

Property price rises in Q2: HDB, private sectors

By Dennis Chan


HDB flat prices in the second quarter of 2011 rose by 2.9 per cent to a record, according to initial estimates by the Housing Board.

The increase is the fastest since the third quarter of 2010. Resale flat prices in the first quarter had risen by 1.6 per cent from the fourth quarter of 2010.

Prices of private homes, on the other hand, increased at a slower pace in the second quarter. The Urban Redevelopment Authority's residential price index climbed by 1.9 per cent during the quarter - which are mostly based on transaction prices given in caveats lodged during the first 10 weeks of the quarter.

This is slower than the 2.2 per cent growth in the first quarter. It is also the seventh consecutive quarter in which the rate of increase has fallen since the fourth quarter of 2009.

Prices of non-landed private homes rose by 1.6 per cent each in the core central region and outside central region. In the rest of central region, prices were up just 1.2 per cent.

The HDB plans to launch 2,000 flats under a sale of balance flats exercise in August. Some of these flats will be in the mature estates. The board is also on track to offer 22,000 build-to-order (BTO) flats by September and another 3,000 BTO flats in the last quarter.

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http://www.channelnewsasia.com/stori...138297/1/.html

Private home prices up 1.9% in Q2

By Jonathan Peeris / Millet Enriquez | Posted: 01 July 2011 1316 hrs


SINGAPORE: Private home prices in the second quarter rose at a slower pace than the previous quarter indicating that the red-hot property market might be cooling down.

This is according to the latest flash estimates from the Urban Redevelopment Authority (URA).

The price index rose 1.9 per cent to 202.8 points, compared with the 2.2 per cent increase in the previous quarter.

For the second quarter of this year, non-landed residential properties in the prime city area, or core central region, increased by 1.6 per cent.

Analysts said this was mainly due to fewer property launches in the central area.

Colin Tan, Head of Research and Consultancy at Chesterton Suntec International, said: "When the number of launches decrease, then sometimes there is less market comparison. Usually launches help to stimulate the market because there is available market comparison, even the resale activity can move."

The city fringe areas, or rest of central region, posted a 1.2 per cent increase.

And suburban areas, or outside central region, also showed an increase of 1.6 per cent.

URA said the rate of price increase has moderated for seven consecutive quarters, since the fourth quarter of 2009.

The overall moderation in private home prices did not surprise analysts.

Nicholas Mak, Executive Director of Research & Consultancy at SLP International, said: "The decelerating rate of price growth is not something unexpected because we have already seen such a trend for the last one-and-a-half years. So the slowing growth is actually the combination of the effects of all the cooling measures that the government has been introducing for the past 20 months."

Going forward, analysts said high liquidity and cheap credit will help support private home prices.

Mr Mak said: "I think this trend of price increase but at a very marginal rate will continue probably for the next two quarters. So prices can still inch upwards, but at a rate of between one to 2.5 per cent per quarter."

With some headwinds coming from the Eurozone debt crisis and policy tightening risks by the government, analysts expect overall price growth this year at between six and eight per cent -- much lower than the 17.6 per cent in 2010.

The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter supplemented by information on the number of new units sold.

- CNA/fa/ac