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PR Newswire
01-03-2011, 06:04 AM
Mar 1, 2011
Private home prices in central region rise in Jan
PRIVATE home prices in the central region rose strongly in January compared with the month before, after a slide in December, according to an index.
Prices were up 2.7 per cent in January after easing by 0.8 per cent in December, compared with November, said the latest flash estimates for January from the National University of Singapore (NUS).
This was despite the latest round of property cooling measures unveiled by the Government in mid-January.
The NUS Singapore Residential Price Index defines central region homes as those in Districts 1 to 4 and 9 to 11, and measures prices of completed non-landed private homes.
Property analysts say central region homes are less susceptible to such measures, as buyers tend to be cash-rich and do not need to borrow to the same extent.
They also say home prices in the central region are still lower than the all-time high in early 2008.
Prices of homes outside the central area also gained ground, up 2.5 per cent in January, a little stronger than the 2.3 per cent rise in December. The overall index rose 2.6 per cent in January, up from 1 per cent in December.
Cushman & Wakefield's senior manager of Asia-Pacific research Ong Kah Seng said resale homes are about 20 per cent cheaper than new ones - perhaps prompting buyers to look at resale properties.
Other analysts said the figures indicate that demand for completed homes is coming from genuine home buyers, with January's round of cooling measures wiping out most of the speculative activity.
Still, analysts caution that the recent data might not accurately reflect the impact of the measures on the market.
'The measures were brought in on Jan 14, halfway through the month. Before that the market had already enjoyed half a month of brisk sales, which the data would also capture,' said PropNex chief executive Mohamed Ismail.
Colliers International director of research and advisory Tay Huey Ying said a price decline is not in sight. 'Demand fundamentals like low interest rates, high market liquidity, strong employment figures and rising wages all point towards a continued increase.'
She expects moderated price rises.
Figures from the Monetary Authority of Singapore out yesterday show home loans growth holding up. Preliminary data for January points to 1.6 per cent growth in mortgage numbers to $112.4 billion compared with December - even better than December's 1.3 per cent growth.
RBS research analyst Trevor Kalcic said this 'probably primarily reflected continued strong drawdowns on loans made prior to the introduction of government property cooling measures last August and in January this year'.
CHERYL LIM
Private home prices in central region rise in Jan
PRIVATE home prices in the central region rose strongly in January compared with the month before, after a slide in December, according to an index.
Prices were up 2.7 per cent in January after easing by 0.8 per cent in December, compared with November, said the latest flash estimates for January from the National University of Singapore (NUS).
This was despite the latest round of property cooling measures unveiled by the Government in mid-January.
The NUS Singapore Residential Price Index defines central region homes as those in Districts 1 to 4 and 9 to 11, and measures prices of completed non-landed private homes.
Property analysts say central region homes are less susceptible to such measures, as buyers tend to be cash-rich and do not need to borrow to the same extent.
They also say home prices in the central region are still lower than the all-time high in early 2008.
Prices of homes outside the central area also gained ground, up 2.5 per cent in January, a little stronger than the 2.3 per cent rise in December. The overall index rose 2.6 per cent in January, up from 1 per cent in December.
Cushman & Wakefield's senior manager of Asia-Pacific research Ong Kah Seng said resale homes are about 20 per cent cheaper than new ones - perhaps prompting buyers to look at resale properties.
Other analysts said the figures indicate that demand for completed homes is coming from genuine home buyers, with January's round of cooling measures wiping out most of the speculative activity.
Still, analysts caution that the recent data might not accurately reflect the impact of the measures on the market.
'The measures were brought in on Jan 14, halfway through the month. Before that the market had already enjoyed half a month of brisk sales, which the data would also capture,' said PropNex chief executive Mohamed Ismail.
Colliers International director of research and advisory Tay Huey Ying said a price decline is not in sight. 'Demand fundamentals like low interest rates, high market liquidity, strong employment figures and rising wages all point towards a continued increase.'
She expects moderated price rises.
Figures from the Monetary Authority of Singapore out yesterday show home loans growth holding up. Preliminary data for January points to 1.6 per cent growth in mortgage numbers to $112.4 billion compared with December - even better than December's 1.3 per cent growth.
RBS research analyst Trevor Kalcic said this 'probably primarily reflected continued strong drawdowns on loans made prior to the introduction of government property cooling measures last August and in January this year'.
CHERYL LIM
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