Private property prices slow

PRIVATE home prices rose a slender 0.2 per cent over the second quarter. That’s half the Urban Redevelopment Authority’s earlier flash estimate of 0.4 per cent growth. This was the third consecutive quarter in which prices rose more slowly, after rocketing 31.2 per cent last year.

“The continued weakening of the property price index continues to reflect cautious sentiment in view of the slowing US economy, concerns about the sub-prime crisis and erratic stock market,” said Eugene Lim, assistant vice president at ERA Asia Pacific.

According to the latest government figures, prices of non-landed private residential properties fell by 0.1 per cent on quarter in the core central region, swinging from a 3.8 per cent increase in the previous three months.

Prices of properties in the rest of the central region increased by 0.7 per cent in the quarter, compared with a 3.3 per cent increase in the previous period. Outside the central region, prices increased by 0.9 per cent, slower than a 3.8 per cent rise previously. Prices of office, shop and industrial properties increased by 0.7 and 4.1 per cent respectively. The Government also said the increase in rentals of private residential properties slowed in the second quarter, rising 2.5 per cent compared with 6 per cent in the previous quarter.

Source : Weekend Today – 26 Jul 2008

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