Private home prices up 3.8% in Q 3 but price growth seen easing amid headwinds, cooling measures

by Albert02

Private home prices up 3.8% in Q 3 but price growth seen easing amid headwinds, cooling measures

Private home prices up 3.8% in Q 3 but price growth seen easing amid headwinds, cooling measures. Private home prices may expand more slowly in Q4 after increasing 3.8% in Q3 due to economic challenges, the latest round of property cooling measures, and the end-of-year cyclical drop. The increase in Q3, the tenth consecutive quarter of rising prices, increased from 3.5 percent in Q2 and exceeded the Urban Redevelopment Authority’s 3.4 percent flash estimate given earlier this month (URA).

According to Lee Sze Teck, senior director (research) at Huttons, private home prices will rise by 1 to 2% in Q4, but by 9 to 10% for the year. In the first three quarters, private property values climbed by 8.2 percent.

According to CBRE, “the new policies could engineer a soft landing, with new private house sales increases and price rises in the next 12 months.” In September, the government approved additional property cooling measures to reduce demand and ensure prudent financing. CBRE does not expect a crash, citing grounds such as healthy household financial sheets, low unsold inventory, and a strong rental market.

Cushman & Wakefield predicts a halt in price increases, but developers are unlikely to lower prices at new launches. “Unsold inventory is low,” he said, “while land acquisition and construction costs remain high.” Developers are likely to slow their launch progress and re-calibrate their marketing strategies in light of potentially lower demand due to higher interest rates and an economic slowdown.”

The increase in private home prices in Q3 was led by non-landed property prices, which increased by 4.4% after increasing by 3.6% the previous quarter. Non-landed home prices in the outside central region (OCR) increased the most, by 7.5%, thanks to major launches such as AMO Residence, Lentor Modern, and Sky [email protected], which saw brisk sales even at benchmark prices. Because of the high demand from HDB upgraders, the median price of units sold in those projects in Q3 was all above S$2,100 per square foot. In Q2, non-landed property prices in the OCR increased by 2.1%.

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Source:
https://www.businesstimes.com.sg/property/mobile-spotlight/private-home-prices-38-q3-price-growth-seen-easing-amid-headwinds-cooling


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