Singapore’s private residential property prices rise 1.1% q-o-q in 3Q2021: URA

(Credit: Samuel Isaac Chua/ The Edge Singapore)

SINGAPORE (EDGEPROP) - Private residential property prices in Singapore rose 1.1% q-o-q in 3Q2021, higher than the 0.8% q-o-q increase in the preceding quarter, and exceeding the 0.9% increase in flash estimates released by the URA on Oct 1.

The non-landed segment rose by 0.7% q-o-q, lower than the 1.1% increase observed in the last quarter. Meanwhile, the landed segment saw a rise of 2.6% q-o-q, improving after the 0.3% decline recorded in the prior quarter.

In 3Q2021, a total of 3,550 private residential new homes (excluding ECs) were sold, 19.7% higher than the 2,966 units sold in the preceding quarter.

Over the quarter buyers flocked to the new launches in the Outside Central Region (OCR). Among these, developments like Pasir Ris 8 (425 units) and The Watergardens at Canberra (285 units) “benefitted from pent-up upgrader demand and were among the best-selling projects for the quarter”, notes Tricia Song, head of research, Southeast Asia, CBRE. (Browse newly launched condos in Singapore right now)

Over the quarter, 5,362 resale units were transacted, which Song attributes to “construction delays and the widening price gap between new launches and resale properties”.

Meanwhile, prices in the Rest of Central Region (RCR) showed the steepest q-o-q increase among the sub-markets, growing by 2.6%. This is followed by prices in the Core Central Region (CCR) and the Outside Central Region (OCR) which shrunk by -0.5% and -0.1% respectively.

“On the back of positive market conditions, it is likely that upcoming tenders of GLS sites will continue to see strong interest and stiff competition. Meanwhile, developers may also turn to private enbloc sites selectively. Some projects have been put up for collective sale via tender recently,” Song notes.

“Our observations suggest that buyers’ confidence remains generally intact, buoyed by the economic recovery, the low interest rate environment and excess liquidity in the market. For the last quarter of 2021, home sales may be slightly muted due to the restrictions under the ‘Stabilisation Phase’ which may impact viewings, as well as the festivities during the year end,” comments Ismail Gafoor, CEO of PropNex Realty.