Singapore Property Residential Report Q1 2019 | Opportunities in Singapore Residential Condo Market

Singapore Property Residential Report Q1 2019 | Opportunities in Singapore Residential Condo Market

April 10, 2019

URA Property Price Index PPI | Singapore Luxury Condominium

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.

 

Price Trend of Singapore Core Centreal Region | SG Luxury Condominium

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.

Region

q-o-q

y-o-y

Since the last trough

Whole Island-0.1%2.6%8.7%
Core Central Region-2.9%-1.8%5.2%
Rest of Central Region-0.2%5.9%9.2%
Outside Central Region0.0%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/NProject NameMarket SegmentTotal No of Units in ProjectNo of Units Sold in Q1 2019Average Unit Price ($ psf) in Q1 2019

Private Non-Landed Residential Projects

1Treasure at TampinesOCR2,203270$1,399
2Affinity at SerangoonOCR1,052179$1,493
3The Tre VerRCR729175$1,593
4Riverfront ResidencesOCR1,472119$1,325
5Parc EstaRCR1,39982$1,716

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.

Transaction Volume and Average Price Quantum of the Top 5 New Sale Private Residential Projects Sold in Q1 2019

Project Name<500 sq ft500-800 sqft800-1000 sqft1000-1500 sqft>1500 sqft
Treasure at Tampines76

$633,697

96

$859,281

45

$1,093,689

44

$1,458,818

9

$2,054,111

Affinity at Serangoon108

$719,935

238

$973,894

66

$1,315,045

51

$1,794,300

14

$2,321,396

The Tre Ver54

$767,700

292

$1,028,032

71

$1,750,899

Riverfront Residences208

$619,921

486

$818,485

84

$1,174,494

146

$1,497,632

12

$2,162,917

Parc Esta114

$775,044

173

$1,061,214

139

$1,451,619

46

$1,845,652

1

$2,420,000

 

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.

Rentals

Average Rents 2019 | SG Luxury Condo

Besides the rents for ultra-luxury non-landed properties, the rents for the rest of the market stayed flat q-o-q.

 

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.

Market Segment

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 OCR3.6%-1.0% to 3.0%
Landed Homes1.1%5.5%-1.0% to 1.0%

Outlook for Private Home Prices