News break: Fourth straight quarter of price decrease in the private home market!

By The Folks @PropTalk - October 24, 2014 No Comments

Prices of private residential properties in the third quarter fell by 0.7% from the previous quarter – the fourth consecutive quarter of decline, the Urban Redevelopment Authority (URA) said on Friday (Oct 24).

The price decline was observed across all segments of the private residential property market, URA said. Prices of non-landed properties in the Core Central Region (CCR) declined by 0.8% from the previous quarter, following the 1.5% decrease in the April to June period. Prices in the Rest of Central Region (RCR) declined by 0.4%, the same rate of decline as in the previous quarter. In Outside Central Region (OCR), prices declined by 0.3%, after the 0.9% decline in the previous quarter. Prices of landed properties declined by 1.8%, following the decrease of 1.7% in the previous quarter.

Rentals of private residential properties in the third quarter fell by 0.8% from the previous quarter, compared with a 0.6% decline in the April to June period.

Developers launched 1,294 uncompleted private residential units excluding Executive Condominiums (ECs) in the third quarter, lower than the 2,843 units in the second quarter, URA said. A total of 1,531 private residential units (excluding ECs) were sold by developers during the quarter, compared with 2,665 units in the previous quarter.

No new EC units were launched for sale during the quarter. Developers sold 162 EC units in the third quarter, compared with the 154 units sold in the second quarter.

The number of resale transactions fell to 1,288 in the third quarter, down from 1,389 transactions in the previous quarter. Resale transactions accounted for 43.6% of all sale transactions during the quarter, compared with 33% in the second quarter.

There were 136 sub-sale transactions in the third quarter, down from 158 transactions in the previous quarter. Sub-sales accounted for 4.6% of all sale transactions in the quarter, up from the 3.8% recorded in the April to June period.

As at the end of the third quarter, there were 74,496 uncompleted private residential units (excluding ECs) in the pipeline, compared with 76,014 units in the previous quarter. Of this number, 28,120 units remained unsold. Adding the 14,131 upcoming EC units, there are a total of 88,627 units in the pipeline.

Another 8,550 units (including ECs) will soon be added to the pipeline supply, the URA said.

Source: CNA

Looking like it's gonna be a case of "It's Raining Condos" rather than "Men" in our Singapore context. If we apply similar economic definition for a country's GDP, the Singapore private home market is already well into technical recession.

As prices of new residential properties continue to fall, one can reasonably expect a knock-on effect in the secondary market (unless this time-tested notion no longer apply for reasons unknown). And the viscous circle continues...

So unless you are a first-time buyer and/or have a mother-load of cash stashed under the pillow, the wife and I reckon that the short to medium-term prospects for upgraders may not be as rosy as one may have expect.

Interesting times ahead we tell ya!


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