Private home prices slips 0.4% in 4Q2016: URA
By Tan Chee Yuen
/ The Edge Property |
Private home prices softened for a 13th consecutive quarter, easing 0.4% q-o-q in 4Q2016, after a 1.5% decline in the previous quarter, according to the Urban Redevelopment Authority's (URA) latest flash estimates. For the whole of 2016, prices fell 3.0%, compared with a 3.7% decline in 2015.
The Core Central Region (CCR) outperformed other segments with prices remaining unchanged in 4Q2016 as opposed to a 1.9% decline in 3Q2016. In Rest of Central Region (RCR), prices fell by 2.0% in 4Q2016, following a 1.0% decrease in 3Q2016. Similarly, prices in Outside Central Region (OCR) slipped 0.3% in 4Q2016, after a 1.0% dip in 3Q2016.
Desmond Sim, Head, CBRE's head of research, Singapore and South East Asia, says, "We expect continuous pressure on prices across the board, with ABSD to be levied on some projects with unsold units starting this year. However, that impact will also be minimal given the resilience of the market." Sim adds that private home prices will be supported by higher land costs, shrinking unsold stock and the still-healthy balance sheets of developers. That said, a challenge to the market this year is the potential rise in interest rates, which could cause a drag down secondary market prices.
Lee Nai Jia, Edmund Tie & Company's head of research for South East Asia, says "While there are signs that the market is bottoming out, it is still premature to conclude that is the case given the uncertainty of the macroeconomy. We anticipate that prices will remain at its current level, with fluctuations around the current mean." Lee expects to see more upgrades from HDB owners as prices for private residential properties continue to decline further.
In the public housing segment, prices of resale flats stayed flattish, easing just 0.1% q-o-q in 4Q2016, according to a flash estimate by HDB. Prices declined by 0.1% for the whole of 2016.
HDB will roll out about 17,000 new flats for sale in 2017. The first Build-To-Order exercise in February will offer about 4,100 flats in Clementi, Punggol, Tampines and Woodlands.
Source: URA
Source: URA
Source: HDB
Source: HDB
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