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01-10-2012, 07:42 PM
And the party continues.... 
Private home prices up 0.5% in Q3
By Lynda Hong | Posted: 01 October 2012 1123 hrs
Link: http://www.channelnewsasia.com/stories/s...17/1/.html
SINGAPORE: Prices of private residential properties in Singapore rose 0.5 per cent to a new record high in the third quarter of 2012, according to flash estimates released by the Urban Redevelopment Authority.
This was the highest rate of increase this year compared to the 0.1 per cent drop in the first quarter and the 0.4 per cent increase in the second quarter.
The increase in Q3 was led mainly by the mass market segment where prices rose 1 per cent, compared to the 0.5 per cent increase in the previous quarter.
Prices also rose at a faster pace for homes in the city fringe. They were up by 0.7 per cent in Q3, compared to the 0.4 per cent rise in Q2.
Meanwhile, prices of homes in the core central region moderated, recording an increase of 0.2 per cent in Q3, lower than the 0.6 per cent rise in the previous quarter.
Some analysts expect more upside to private property prices in the coming quarters as a result of higher land bids tendered by the developers.
Alan Cheong, director, Research & Consultancy, Savills, said: "Ignoring the effects of location, for 1H2012, the average price for residential GLS sites was S$523 psf ppr compared with S$457 psf ppr for 2H2011.
"For 3Q2012, the average was S$758 psf ppr due mainly to the predominance of RCR sites being awarded. Given that land costs make up the largest element in total development costs, come 2013 when these projects are launched, barring externalities, intervention and assuming developers pass on these costs to the market, the property price index may accelerate again."
Mr Cheong expects prices to rise 1 per cent on-quarter in Q4 2012.
Meanwhile, others said prices may stabilise or even moderate going forward.
"With increased supply anticipated, I expect prices to further moderate, resulting in an overall 1 per cent to 2 per cent growth in the private property price index for the entire 2012," said Mohd Ismail, CEO, Propnex.
Chia Siew Chuin, director of Research & Advisory, Colliers International, said: "Buyer resistance to prices that are already at record levels is increasing, and the government is likely to implement more measures if the market shows any untoward reaction to QE3.
"These factors should maintain some degree of stability and sustainability in Singapore's residential market over the next 12 months."
- CNA/cc
Private home prices up 0.5% in Q3
By Lynda Hong | Posted: 01 October 2012 1123 hrs
Link: http://www.channelnewsasia.com/stories/s...17/1/.html
SINGAPORE: Prices of private residential properties in Singapore rose 0.5 per cent to a new record high in the third quarter of 2012, according to flash estimates released by the Urban Redevelopment Authority.
This was the highest rate of increase this year compared to the 0.1 per cent drop in the first quarter and the 0.4 per cent increase in the second quarter.
The increase in Q3 was led mainly by the mass market segment where prices rose 1 per cent, compared to the 0.5 per cent increase in the previous quarter.
Prices also rose at a faster pace for homes in the city fringe. They were up by 0.7 per cent in Q3, compared to the 0.4 per cent rise in Q2.
Meanwhile, prices of homes in the core central region moderated, recording an increase of 0.2 per cent in Q3, lower than the 0.6 per cent rise in the previous quarter.
Some analysts expect more upside to private property prices in the coming quarters as a result of higher land bids tendered by the developers.
Alan Cheong, director, Research & Consultancy, Savills, said: "Ignoring the effects of location, for 1H2012, the average price for residential GLS sites was S$523 psf ppr compared with S$457 psf ppr for 2H2011.
"For 3Q2012, the average was S$758 psf ppr due mainly to the predominance of RCR sites being awarded. Given that land costs make up the largest element in total development costs, come 2013 when these projects are launched, barring externalities, intervention and assuming developers pass on these costs to the market, the property price index may accelerate again."
Mr Cheong expects prices to rise 1 per cent on-quarter in Q4 2012.
Meanwhile, others said prices may stabilise or even moderate going forward.
"With increased supply anticipated, I expect prices to further moderate, resulting in an overall 1 per cent to 2 per cent growth in the private property price index for the entire 2012," said Mohd Ismail, CEO, Propnex.
Chia Siew Chuin, director of Research & Advisory, Colliers International, said: "Buyer resistance to prices that are already at record levels is increasing, and the government is likely to implement more measures if the market shows any untoward reaction to QE3.
"These factors should maintain some degree of stability and sustainability in Singapore's residential market over the next 12 months."
- CNA/cc
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