For the first time since their downtrend, high-end home prices fared better than their mass-market cousins in the stress test facing the residential market. Non-landed home prices in the Core Central Region (CCR) slipped by just 0.4% quarter-on-quarter (q-o-q) in 1Q15 compared to the 1.1% decline witnessed in Outside Central Region (OCR), according to latest data by the Urban Redevelopment Authority (URA). While it might be too early to pop the champagne, several fundamentals worked in favour of this market segment.

The number of resale caveats in the CCR picked up 38% in 1Q15 compared to the same period a year ago. With prices having fallen by some 7% from the 1Q13’s peak, buyers were drawn back to this segment for its potential upside and improved affordability. On the other end of the spectrum, stubbornly high prices in the OCR, oversupply fear and weak Housing & Development Board (HDB) resale flat prices continued to batter demand for mass-market homes. According to latest release by the HDB, prices of resale flats fell 1.0% q-o-q in 1Q15, marking the seventh consecutive quarter of decline.

Table 1: Q-o-Q price growth / decline for non-landed homes and HDB resale flats