| SINGAPORE: Singapore's private home prices rose 0.4% on quarter in the April-June period for the fifth straight quarter.
This is according to a flash estimate by the Urban Redevelopment Authority.
The URA's private residential property index stood at 115.1 points in the second quarter, up from 114.6 in the January-March quarter.
Prices rose 0.7% in January-March from October-December.
The URA's advance estimate is based on caveats lodged during the first 10 weeks of the quarter supplemented by information on the number of new units booked.
The URA will release a detailed report on Singapore's property market later in the month.
Meanwhile HDB resale prices fell in the second quarter.
The HDB resale price index came in at 101.6 points, down 4.8 percent from the first quarter.
It was the first quarter on quarter decline in more than 3 years and the biggest drop since early 1998.
The board says this could be due to new measures introduced in April when HDB said only its assigned licensed valuers could value its flats.
This effectively put a stop to a practice where the price of a property would be inflated to allow buyers to gain access to bigger loans.
Marcus Chu, Senior Vice-President, Real Estate Division, Hersing Corp, said: "That actually helps to curb the cash back problems in the industry and therefore there is a very clear sign that volumes have declined. The properties have been over valued in the past months. And when measure kicked in it actually reflects the true property values of the flats."
Over in the private residential space, advanced figures from the Urban Redevelopment Authority showed that prices rose 0.4 percent in the April to June period from the previous quarter.
This is despite a host of property launches in the second quarter.
Analysts say that is due to demand for high-end and niche market projects.
Mr Chu said: "Buyers are more location driven. Which means they buy according to the locations that is their preferred choice, that is near to the central locations and prices that is very affordable."
Feng Zhi Wei, Associate Director, Real Estate Intelligence Service (Asia), Jones Lang LaSalle, said: "In fact the sales are also quite good. So we see these well located projects with a kind of attractive team or competitive pricing there is still a ready pool of buyers."
Analysts say buyers are now more discerning when it comes to buying a home due to economic uncertainty and the concern over possible rising interest rates.
For this year, analysts still expect private home prices to rise by between 3 percent and 5 percent, while HDB flats may stabilise. - CNA /ch |
