Private home prices in Singapore rose by 0.8 per cent in the third quarter from the previous quarter, according to flash estimates released by the Urban Redevelopment Authority (URA) on Thursday (Oct 1).
The private residential property index rose by 1.2 points, from 152.6 points in the second quarter to 153.8 points in the third quarter.
The increase is slightly more than the 0.3 per cent rise between the first and second quarters.
Prices of non-landed private residential properties in the Core Central Region fell by 4.9 per cent, compared to a 2.7 per cent increase in the previous quarter.
This was offset by a 3.3 per cent rise in prices in the Rest of Central Region, after a 1.7 per cent decrease last quarter.
Prices in the Outside Central Region also rose 1.7 per cent, compared to a 0.1 per cent increase recorded in the previous quarter.
As for landed properties, prices rose 3.8 per cent after staying unchanged in the second quarter.
The resilience in the property market is “encouraging” given uncertainties in the economic and employment outlook amid the COVID-19 situation, said Ms Christine Sun, head of research and consultancy at OrangeTee & Tie.
“It is also rather unprecedented that the market averted a major price correction during the current pandemic,” Ms Sun said.
Measures such as allowing borrowers to defer loan repayments and temporary relief measures likely prevented home owners and developers from slashing prices too drastically to move sales, she said.
Market sentiment picked up “substantially” after the end of the “circuit breaker” and may continue to improve in the coming months as more sectors of the economy reopen, added Ms Sun.
The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up to mid-September.
The statistics will be updated on Oct 23, when URA releases its full set of real estate statistics for the third quarter.
“The public is advised to interpret the flash estimates with caution,” said URA.
Source: CNA – 1 Oct 2020