The URA Private Property Price Index declined in Q1 2019, with the sellers in the secondary market feeling under greater pressure to lower their asking prices due to the slowing sales of Singapore condominium.
The prices of new projects were holding up in Q1, and the decline in URA price indices was more reflective of the prices of completed properties transacted in the secondary market in Q1. The NUS Singapore Residential Price Index, which tracks prices of completed non-landed private homes and a proxy for the secondary market, eased by 0.5% month-to-month after January’s 0.2% dip in price.
Secondary sale transactions in Q1 2019 dropped to 1,623 units from 2,165 units in Q4 2018. While not all the properties transacted Q1 2019 were recorded yet, it was unlikely the secondary sale transaction volume would exceed the 2,165 units transacted in Q4 2018. In contrast, new sales declined more moderately than the secondary sales, retreating by 7.4% q-o-q to 1,681 units in Q1 2019.
Intuitively, the prices of the non-landed properties in Core Central Region (CCR) were expected to be more resilient than prices of those outside CCR. Yet, the price index for CCR non-landed private residential properties declined by 2.9% q-o-q, and the price index for non-landed properties Outside Central Region (OCR) stayed flat. The price index for non-landed properties in the Rest of Central Region (RCR) also stayed largely unchanged, dipping marginally by 0.2% q-o-q.
Since the last trough
|Core Central Region||-2.9%||-1.8%||5.2%|
|Rest of Central Region||-0.2%||5.9%||9.2%|
|Outside Central Region||0.0%||3.6%||11.1%|
Non-landed Residential Property Price Indices by Planning Region
The decline in prices suggested that sellers that were willing to lower their asking prices acquired their homes near to the trough of the cycle.
|S/N||Project Name||Market Segment||Total No of Units in Project||No of Units Sold in Q1 2019||Average Unit Price ($ psf) in Q1 2019|
Private Non-Landed Residential Projects
|1||Treasure at Tampines||OCR||2,203||270||$1,399|
|2||Affinity at Serangoon||OCR||1,052||179||$1,493|
|3||The Tre Ver||RCR||729||175||$1,593|
Notable Projects in Q1 2019 by Number of Units Sold
The announcement of the Cross-Island Line helped support sales of previous launches, for instance Affinity at Serangoon.
Many buyers were purchasing the two-bedroom units (500-800 sq ft) at prices below S$2 million in top 5 selling projects in Q1 2019.
2019 Singapore Residential Property Market Outlook
We project sales to remain moderate for the rest of 2019 due to the growing mismatch of price expectations between buyers and sellers. Notwithstanding, the recent announcement of the Draft Master Plan 2019 may encourage more sales in areas that are earmarked for future development. Additionally, the property price index for non-landed properties in CCR is likely to improve or stabilise after the announcement the initiatives to rejuvenate the CBD and Orchard Road, and the development of the Greater Southern Waterfront.
Actual (as at Q1 2019) q-o-q %
Actual (as at Q1 2019) y-o-y %
Projected y-o-y % Change by end 2019
|Non-Landed Island-Wide||-1.0%||2.6%||-1.0% to 3.0%|
|Non-Landed CCR||-2.9%||-1.8%||-1.0% to 1.0%|
|Non-Landed RCR||-0.2%||5.9%||-1.0% to 4.0%|
|Non-Landed OCR||–||3.6%||-1.0% to 3.0%|
|Landed Homes||1.1%||5.5%||-1.0% to 1.0%|
Outlook for Private Home Prices