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Private residential property prices rose 1.1% in Singapore in 3Q2021, more than the 0.8% increase in the previous quarter and higher than the 0.9% increase reported by the URA on October 1.
The increase in non-landed segments was 0.7% q/o-q, which is lower than the 1.1% rise recorded in the previous quarter. The landed segment experienced a 2.6% increase q-o–q, a significant improvement on the 0.3% decrease in the previous quarter.
3Q2021, there were 3,550 residential new homes, excluding ECs. This is 19.7% more than the 2,966 units that were sold in the previous quarter.
Quarter buyers were affluent to new launches in the Outside Central Region. Pasir Ris 8 (with 425 units) as well as The Watergardens in Canberra (285 units), “benefitted form pent-up upgrader demands and were amongst the most-sold projects for the quarter”, says Tricia Song, CBRE’s head of research, Southeast Asia.
Song attributes the quarter’s 5,362 resale unit transactions to “construction delays” and the “widening price gap between new launches, resale properties, and the wider market.
Prices in the Rest of Central Region, (RCR), saw the highest q-o-q growth among sub-markets. They grew by 2.6%. The Core Central Region (CCR), and the Outside Central Regions (OCR), saw their prices shrink by -0.5%, -0.1%, respectively.
“GLS sites are likely to continue to attract strong interest due to the positive market conditions. Developers may choose to use private enbloc websites in the meantime. Song notes: “Some projects were recently put up for sale by collective tender.”
Our observations show that buyers’ confidence is generally intact, buoyed in part by the economic recovery and the lack of interest rates. PropNex Realty CEO Ismail Gafoor says that home sales might be less for the final quarter of 2021 due to restrictions under the Stabilisation Phase’. This could impact viewings as well as the celebrations during the year end.”